Which type of order involves a transaction that will not settle within the normal settlement period?

Which type of order involves a transaction that will not settle within the normal settlement period?

• A. Fill or Kill Order
• B. Delayed Delivery Order
• C. Market Order
• D. Good Till Date

Answer: (B)

The correct answer highlights the concept of a transaction that does not adhere to the normal settlement timeframe typically set for securities transactions. A delayed delivery order is specifically designed to specify that the delivery of the transaction will take place at a later date rather than the standard timeline. This feature is utilized in various scenarios where either the buyer or seller requires additional time beyond the usual settlement period to process the transaction.

In contrast, a fill or kill order, market order, and good till date orders pertain to different rules regarding execution and duration but do not explicitly indicate a postponement of the settlement timeframe. A fill or kill order demands immediate execution or cancellation, while a market order is executed at the current market price promptly. A good till date order will remain active until a specific date unless fulfilled, but still operates within the regular settlement period. Thus, none of these options directly apply to transactions that extend beyond the standard timeline like a delayed delivery order does.