Order Splitting

Order Splitting - Order Splitting is when stockbrokers split up larger orders to qualify them for the Small Order Execution System (SOES) and, therefore, have them automatically executed. The practice prohibited by rules of the National Association of Securities Dealers (NASD) where shareholders might split orders in order to qualify them as small orders for purposes of automatic execution by the Small Order Execution System (SOES). It is the breaking up orders so they can process as small orders for execution. It is for individual stock investors and stock traders with orders less than or equal to one thousand shares at a time.