0
votes
2answers
167 views

Bidding/Asking Fraction of a cent

I know that stocks below $1.00 can be traded to 4 decimal places, but is that possible for stocks above $1.00? On a list order transactions, one can find prices like $2.2801 despite most ecn brokers ...
7
votes
1answer
166 views

Arbitrage with a limit order

The usual notion of arbitrage means that I put two market orders at different exchanges which are immediately executed at different prices, so I earn price difference. Is there a special name for the ...
3
votes
3answers
133 views

Are buyouts always for higher than the market value of a stock?

When a company buys out another company is it always the case that the company doing the buying pays more than the current market value of the stock of company being bought? Can a company not bargain ...
10
votes
5answers
192 views

If I have all this stock just sitting there, how can I lend it out to people for short selling?

Short sellers need to borrow stock in order to short sell. I understand they typically get this stock through a broker though some sort of arrangement where they pay interest. I was wondering, how ...
7
votes
3answers
241 views

If I sell a stock that I don't have, am I required to buy it before a certain amount of time?

I'm just began playing in the stock market. I just executed a SELL, because I think the market is going down. I don't actually have any of this stock. Apparently, it's quite common strategy. I would ...
10
votes
2answers
524 views

Why do non-electronic stock exchanges (with floor traders) still exist?

Now that a lot of the trading is done electronically why does trading on the "physical" stock exchanges (such as NYSE) still exists? Does every NYSE listed stock sale really go through a trader on the ...
5
votes
2answers
204 views

What is the difference between a stop order and a stop limit order?

New to this trading thing. I understand that a stop order will buy a stock if it hits the given amount that I want to pay. And I think I understand that a stop limit order will buy the stock if it ...
9
votes
2answers
130 views

Does an Executed Limit Order Imply a Spot Price?

Suppose I place a limit buy order at $10.00 per share for company XYZ on the NYSE or Nasdaq, while the spot price is say $10.25. If my limit order subsequently executes (whether 5 minutes later or 5 ...
11
votes
3answers
603 views

Why does demand for stock rise when a company appears to have high future value?

So a company decides to raise money by selling shares of its stock. The stock is offered at an initial price of their determination. The stock is then traded in a market where forces of supply and ...