If I bought 100 shares of Tesla and then decided to sell 1 share for .50 on the market.. once it sold..would I see on the Tesla stock ticker that the price had dropped to .50 at some point during the day??

  • I think your stock broker will detect such an order and prevent it from executing. – Flux Aug 23 '20 at 18:40
  • 5
    Sorry but it doesn't work that way. If you place an order to sell below market price, it will sell at market price. – Bob Baerker Aug 23 '20 at 18:46
  • 1
    You won't be able to sell at a price that is outside the National Best Bid and Offer (NBBO). – Flux Aug 23 '20 at 18:48
  • Ohhh! Thanks Bob and Flux! – xtarman Aug 23 '20 at 18:58

Yes, but you'd need a lot more than 1 share to do a pump and dump

Practically systems like National Best Bid and Offer (NBBO) stop one-off things like this from happening.

Theoretically, selling a few shares at say 10% of their value would do absolutely nothing to the market because the buyer would just turn around and sell it again at a fair-market price, thus negating your prankster sell price.

If you really want to tank the stock price, you'd need to pull a Pump-and-Dump - it's illegal so maybe not the best prank.

  • only illegal and exaggerated statements are illegal, there are plenty of legal ways to spark euphoria. For legal ways you can look at the current structure of "Investor Awareness" campaigns, everything you need to know is in the disclaimers at the bottom. – CQM Aug 23 '20 at 19:40
  • @CQM So what happens if let's say there are 10 buyers and only 1 seller, and one of the buyer selects market price, and seller sets the sell price at $500 for a $1 stock. In this case who dictates the market price? isn't the sell price the best a selling price as there is only one selelr? – user1801879 Aug 24 '20 at 20:42
  • @CQM - I referenced a pump and dump because that's the most straight forward way I know for an outsider to tank a stock. I pointed out it was illegal to show people have though of this before. – sevensevens Aug 24 '20 at 23:43
  • @user1801879 yes. a market buy will purchase the share at $500. there is nothing controversial about that. – CQM Aug 25 '20 at 14:51
  • 1
    @user1801879 Market orders are considered dangerous in much of the industry, yes. The whole idea that you might not care about price is absurd. You might set the limit price to be worse than the current market price, but you would never say you want to buy or sell something at any price. – kurtosis Aug 26 '20 at 2:59

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.