Which price is for the buyer here?
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Is it legal for the seller to later charge the bid price after offering and confirmed number of shares with asked price?– JOY MATSOSOApr 7, 2021 at 8:37
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2The absurd difference between buying and selling price should be a pretty good indicator that something is not right here. If there really was such an extreme difference, people would buy tons of the stock at the lower price and sell it at the higher price for a guaranteed profit.– EJoshuaS - Stand with UkraineApr 7, 2021 at 13:40
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2 Answers
The site you're looking at is just a scam, ignore it and walk away
Not that it matters, but on the site, their use of terminology is totally confused / ridiculous
"Is it legal for..." the site you are looking at is an absurd, comic, scam. Issues such as legality are irrelevant.
The site you're looking at is an absurd scam, ignore it and walk away.
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1It would be helpful if you could include how the OP can know that this is a scam so that they can avoid problems like this in the future. Apr 7, 2021 at 13:41
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@EJoshuaS-ReinstateMonica - that's an excellent point; like, to you or me it's completely self-evidently a scam for a zillion reasons, but, you and I have Developed Senses for that sort of thing. Folks who come asking is the sugar daddy is a scam, I guess have not Developed that yet. I would have to think about how to best express the process of realizing it is a scam. Good point...– FattieApr 7, 2021 at 14:58
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I particularly love the "Delayed Price" (with an "asterisk") :) I guess they "saw that on the internet somewhere".– FattieApr 7, 2021 at 14:59
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No its not scam it is a company registered at the stocker exchange. That's validated and it's true. But what I wanted to know can they swab or change prices after advertising like (i.stack.imgur.com/3uQON.png) Apr 7, 2021 at 16:13
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@JOYMATSOSO: Any system of trust can be faked. Companies can lie about being registered, can pose as another (legitimate but not well known) company that is registered, can register successfully despite being scammers, etc.– BrianApr 7, 2021 at 16:49
This is a clumsy scam site. Someone who doesn't know what they're talking about threw together a bunch of terms in a way that doesn't make sense at all. For example, ask is the price that people are trying to sell at, and bid is the amount that people are trying to buy at - they reversed that.
It makes no sense to talk about a price that's different than Bid or Ask. The price is the intersection of the amount that people are willing and able to buy at and what owners are willing and able to sell for.
Also, the spread here is absolutely absurd. If you really could buy a stock for R17.20 and sell it for R306.92, people would buy tons of the stock at the lower price and sell it at the higher price for an immediate profit of R289.72 per share.
In reality, at any given moment, the purchase price is higher than the selling price, not the other way around. The difference, called the spread, is effectively a fee for the market makers. As I said before, if the selling price really was higher than the buying price at a particular moment, people would just purchase the stock and immediately sell it for a profit, which would drive the prices towards each other.
answered Apr 7, 2021 at 16:04
EJoshuaS - Stand with UkraineEJoshuaS - Stand with Ukraine
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4It's possible that the scammer is intentionally misusing terminology in order to scare away savvier victims. This can be useful to scare away savvier victims before later steps which require manual intervention by the scammer.– BrianApr 7, 2021 at 16:47
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@EJoshuaS you answered me above thank you. Just wanted that clarity in Ask and Bid price. The companylon it's legit I can promise you that. But don't work about that part. Thank you so so much. Apr 7, 2021 at 20:29