Order Placement: BLiSS (Buy Limit & Sell Stop Below Market)
Which order types are entered BELOW the prevailing market price and are automatically reduced on the ex-dividend date unless marked 'Do Not Reduce' (DNR)?
BLiSS: Buy Limit and Sell Stop orders are entered BELOW the current market price.
Complete Analysis & Legal Rationale
BLiSS: Buy Limit and Sell Stop orders are entered BELOW the current market price. On the ex-dividend date, when the stock price automatically drops by the dividend amount, BLiSS orders are REDUCED by the dividend amount unless marked DNR (Do Not Reduce).
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
BLiSS orders sit below market and are automatically reduced on ex-dividend dates.
SLoBS sit above market and are NEVER adjusted on ex-dividend dates.
IOC orders cancel immediately if unfilled; they do not sit on books.
FOK orders cancel immediately if not executed in full.
Official Standard: Mandates downward adjustment of BLiSS orders on ex-dividend dates.