Stop orders

[Greatelto@xxxxxxx]

>>>>>>>>>>If you give a stop loss order on IOM, let's say at 10 7/8 gtc, the
broker
will
>enter the order per your instructions.  The broker will give it to the
>specialist who makes a market in IOM who will enter the order on his book.
>That is the only place the order will be.  If the stock trades below the stop
>loss price on the PSE (after the NYSE closes), the order will not be executed
>by the specialist.  Hell, he is off with his chick-a-dee having cocktails and
>"doing other things."  The next trading day say the stock opens at 8 on the
>NYSE.  That kicks off the stop loss and it becomes a market order   to sell.
>If the order was a stop limit, then the specialist has an open order to sell
>at 10 7/8.

This doesn't often happen now, because leaving stop orders on the book
costs the brokerage firm additional specialist commission and because of
the brokerage firm's obligation to seek best execution on ITS. Your stop
order, unless you specify that your order is "Held", lives only on the
brokerage firm's computer, becoming a market order when the appropriate
price is hit. Your salesman probably does not even know this.<<<<<<<<<<<<<

Richard, I have to disagree with you.  In essence, what you are saying above,
is that regardless of where the stock is traded, PSE. Third Market, Instinet,
Arizona Stock Exchange, etc., the stop loss order will be effective the moment
the stock trades at the stop loss price.  Absolutely not!!  The stop loss
order is in effect only on the floor of the major or primary market.  In the
case of IOM, that is the NYSE only.  If the stock is RFP, that is on the ASE
only.  To the best of my knowledge, there are still no stop loss orders
permitted on NASDAQ.  I have been away from the business for a few years now,
so I could be wrong, but I have never heard of a firm holding the stop order
on their computer waiting for the price to be touched.  The firm's risk
exposure would be out of sight....something they would not accept.  And with
commission charges what the are today (low), such action by a firm would not
make sense on a risk/reward basis.

Once again, I contend that a stop loss on IOM is sent to the NYSE floor and
the order held on the market maker's book (or computer).  The stop order is
only elected if the stock trades at the stated price on the NYSE.  What you
are saying may apply to regular buy and sell orders, but I don't think to
stops.

Jerry