All or None (AON)

D is correct. An AON limit order at $18.50 perfectly addresses Jennifer's requirements: it prevents partial fills (all-or-nothing condition), ensures she doesn't pay more than $18.50 (limit price), and allows the order to remain active throughout the day waiting for the full 10,000 shares to become available at the specified price. Since only 3,500 shares are currently available, the AON condition prevents an incomplete fill while allowing time for more shares to be offered.

A is incorrect because market orders do NOT guarantee execution of any specific quantity, and they provide no price protection. A market order could execute in multiple partial fills at various prices throughout the day, creating exactly the problems Jennifer wants to avoid. B is partially correct about price protection but incorrect because a regular limit order (without AON condition) could still fill partially in multiple transactions (2,000 shares now, 3,000 shares later, etc.), resulting in multiple commissions. C is incorrect because FOK (Fill or Kill) requires immediate execution of the full quantity or cancellation. Since only 3,500 of the 10,000 shares are currently available, a FOK order would be immediately canceled, preventing any execution even though Jennifer is willing to wait for the shares.

B is correct. The defining characteristic of an AON (All or None) order is that the entire order quantity must be filled in a single transaction, or the order is not executed at all. No partial fills are permitted regardless of how much of the quantity is available. This all-or-nothing execution requirement is what distinguishes AON from regular orders.

A describes a Fill or Kill (FOK) order, not an AON order. While FOK also requires complete execution, it adds the constraint of immediate execution or cancellation, whereas AON orders can wait for the full quantity to become available. C is incorrect because AON orders can be designated as day orders OR Good Till Canceled (GTC) orders. The time duration is separate from the AON condition. D is completely wrong because AON orders NEVER accept partial fills. The entire specified quantity (100%, not 50% or any other percentage) must be available for execution in a single transaction.

C is correct. In this scenario, AON provides no meaningful advantage and could actually reduce execution likelihood. The stock is highly liquid (500,000 average daily volume), so a regular limit order at $41.50 would likely fill the entire 1,000 shares quickly, possibly in a single transaction anyway. Adding the AON condition creates a lower execution priority and could prevent the order from filling even when sufficient shares are available at acceptable prices, potentially causing the investor to miss the tax planning deadline.

A is incorrect because AON is NOT always appropriate with limit orders. AON is most beneficial for large orders in illiquid securities where partial fills over multiple transactions would create excessive commission costs. For liquid securities with small orders relative to volume, AON adds unnecessary execution risk. B incorrectly attributes price protection to the AON condition. The limit price ($41.50) provides price protection, not the AON condition. AON only ensures all-or-nothing execution and provides no additional price protection beyond the limit price itself. D is factually wrong because AON can be combined with either market or limit orders. AON is an order condition (all-or-nothing execution), while market and limit describe order type (price specification).

C is correct (the EXCEPT answer). AON orders do NOT have a 60-second cancellation requirement or any automatic time limit for immediate cancellation. This describes a Fill or Kill (FOK) order, which requires immediate execution of the full quantity or immediate cancellation. AON orders can remain active throughout the trading day (if designated as day orders) or even longer (if designated GTC), waiting for the full quantity to become available.

A is accurate: AON is an order condition that can be combined with limit orders (specifying both maximum price and all-or-nothing execution) or market orders (specifying only all-or-nothing execution). This combination is common and allows investors to control both price and execution completeness. B is accurate: AON orders typically receive lower execution priority than regular orders at the same price because market makers and specialists can more easily fill regular orders piece by piece. The all-or-nothing requirement makes AON orders harder to execute. D is accurate: One of the primary benefits of AON orders is preventing multiple partial fills. For large orders, receiving the shares in multiple transactions (500 shares, then 1,500 shares, then 3,000 shares, etc.) could generate multiple commission charges, which AON prevents by requiring complete execution in a single transaction.

C is correct. Statements 2, 3, and 4 are accurate.

Statement 1 is FALSE: The AON order will NOT execute immediately even though more than 8,000 shares are available in total. Only 2,000 shares are available at the limit price of $30 or better. The other 7,000 shares are offered above $30 ($30.05 and $30.10), which exceeds the $30 limit price. Since the full 8,000 shares are not available at $30 or better, the AON condition prevents any execution.

Statement 2 is TRUE: The order will not execute because only 2,000 of the required 8,000 shares are available at the specified limit price of $30 or better. AON requires the entire quantity to be available at the limit price (or better) in a single transaction. Until all 8,000 shares are offered at $30 or less, the order remains unfilled.

Statement 3 is TRUE: If this were a regular limit order (without the AON condition), it would execute partially. The 2,000 shares available at $30 would fill immediately, and the order would remain active for the remaining 6,000 shares, filling them as additional shares become available at $30 or better. Regular limit orders accept partial fills, unlike AON orders.

Statement 4 is TRUE: AON orders provide the greatest benefit for large orders in thinly traded (illiquid) securities. In these situations, regular orders might fill in many small pieces over hours or days, generating multiple commission charges. AON prevents this by ensuring complete execution in one transaction or no execution at all, making it ideal for scenarios where partial fills would be costly or create position management complexity.