Impact of Order Types in Market Microstructure

Market microstructure refers to the mechanisms and processes that facilitate the trading of securities. Different trading venues, such as exchanges and over-the-counter (OTC) markets, have distinct microstructures that impact trading efficiency, pricing, and liquidity. A key aspect of market microstructure is the role played by different types of orders in the trading process.

Consider a situation where an institutional investor wants to buy a large number of shares in a company. The investor is concerned about the potential impact of their order on the market price.

Which type of order would most likely help the investor execute their purchase without significantly affecting the stock price?