Series 7 Exam Question 331: Answer and Explanation

Question: 331

Which TWO of the following are TRUE regarding immediate-or-cancel orders?

I. They must be executed immediately.

II. They allow for partial execution.

III. They must be executed in one attempt immediately.

IV. They may be executed in several attempts.

• A. I and III
• B. II and IV
• C. II and III
• D. III and IV

Correct Answer: C

Explanation:

C. An immediate-or-cancel (IOC) order must be attempted to be filled immediately by the firm handling the order but may be filled partially. It is a one-time order and does not allow the order to be executed in several attempts.