Good-'Til-Canceled (GTC) Orders: Semi-Annual Renewal and Cancellation Cycles
A customer places an open Good-'Til-Canceled (GTC) order to buy stock at a limit price below the market. If the limit price is never reached, on what schedule do standard GTC orders automatically expire unless reaffirmed or renewed by the customer?
Standard GTC orders remain open until executed, cancelled, or automatically expired on the last business day of April and October (unless confirmed/renewed).
Complete Analysis & Legal Rationale
A Good-'Til-Canceled (GTC) order (also called an open order) remains active on the market maker's order book until it is executed or explicitly cancelled by the customer. Under standard exchange and broker-dealer operating rules, open GTC orders automatically expire and are purged from the order book on the last business day of April and October, unless the customer contacts the broker-dealer to formally renew or confirm the order.
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:
Standard GTC orders remain open until executed, cancelled, or automatically expired on the last business day of April and October (unless confirmed/renewed).
Fails to adhere to trade execution and settlement rules regarding B.
Fails to adhere to trade execution and settlement rules regarding C.
Fails to adhere to trade execution and settlement rules regarding D.
Official Standard: A Good-'Til-Canceled (GTC) order (also called an open order) remains active on the market maker's order book until it is executed or explicitly cancel