| This might sound like a good thing for the investor, | | | | now spend less on his purchase than originally |
| but it does need a large amount of money to be able | | | | planned, and this means that the risk associated with |
| to manage it well. Stockbrokers do not give priority | | | | the AON order is less. |
| to all-or-none (AON) orders, however, and the | | | | Inflation is the biggest problem in connection with |
| investor would be well advised to make sure that | | | | AON orders, because the investor might have to |
| there are sufficient stocks available to make his or | | | | spend more money than he originally wanted. He |
| her order achievable before placing the order. | | | | could of course try to cancel the order, but if this is |
| Here is an example to illustrate what is meant by an | | | | not possible he will have to go ahead and purchase |
| AON order. There are 700 of a particular type of | | | | the shares. |
| shares available, but an investor wants to by 1,000 | | | | Having placed an AON order, there is of course also |
| of them. If he places an AON order for 1,000, then | | | | no guarantee that the requested stocks will be |
| he will have to wait until there are at least 1,000 of | | | | available, and they may not be available for quite |
| the shares available. In the meantime, however, the | | | | some time, perhaps even a number of months. |
| value of those shares could rise, which would cost | | | | Again, the stock market investor may decide to |
| him a lot more for the 1,000 shares than he was | | | | cancel the order during this time, and not receive the |
| originally prepared to pay. There is also the question | | | | shares he ordered. Because of the low priority |
| of whether the stockbroker can get the order | | | | allocated to AON orders by stockbrokers, this wait |
| through when the time comes. | | | | and subsequent cancellation is quite a common |
| When the full quantity of stocks does become | | | | occurrence. |
| available, the value could be lower, or might have | | | | If you do decide to place an AON order, then be |
| remained the same as it was at the time of placing | | | | careful to select a stockbroker who is experienced |
| the AON order. The lower price is particularly likely if | | | | with these orders and can be relied upon to do his or |
| there has been a bear market, when lots of people | | | | her best for you in this regard. Be wary of a stock |
| are selling their shares, and this causes values to | | | | market broker who is likely to cause delays in your |
| drop. In the case of an AON order, the investor will | | | | order, because of their low priority for him. |