Linked Questions

5
votes
2answers
41k views

Why is the buy price different from the sell price of a stock? [duplicate]

Possible Duplicate: Can someone explain a stock's “bid” vs. “ask” price relative to “current” price? In the stock market, why is there a difference between ...
1
vote
4answers
13k views

What's the difference between Buy and Sell price on the stock exchange [duplicate]

I am new to stock investments. I usually ask for stock broker to write up a quote for me. I can also check the prices on the Malawi Stock Exchange website. However I am not sure which price she quotes,...
2
votes
1answer
3k views

Why bid and ask do not match the price at which the stock is being traded [duplicate]

For a particular stock, the stats look something like this: Price: 54.55 $ Bid: 54.54 $ Ask: 54.55 $ Now if I place a market order, will it get executed at the Price (54.55 $)? My guess is yes. Now ...
-3
votes
1answer
1k views

Why wouldn't an option's last trade price be between the current bid and ask? [duplicate]

In the option table for SPY there is a column called 'Price' and a column called 'Bid' and a column called 'Ask'. If I wish to buy a call option, I need to pay a premium. Which column is the premium ...
1
vote
0answers
329 views

Buy orders increase price of stock? Sell orders decreased price of stock? [duplicate]

My understanding is that buy orders increase the price of stock and sell Orders decrease the price of stock. Is this correct? Aren't more people likely to buy than sell? Aren't there a lot more ...
9
votes
5answers
29k views

Does a market maker sell (buy) at a bid or ask price?

From http://www.fool.com/ddow/2000/ddow000509.htm Assume you want to sell some of your shares of EVE at the current "market" price. The lowest ask price from sellers is $16.00. The market maker ...
2
votes
8answers
10k views

Why would people sell a stock below the current price?

Say we have stock XYZ that costs $50 this second. The bid/ask is 49/51. If I buy some stocks by setting a buy limit order for 47$, and it succeeds, there is a match; someone is selling the stocks ...
10
votes
4answers
14k views

Can a trade happen “in between” the bid and ask price?

According to Investopedia: By looking for trades that take place in between the bid and ask, you can tell when a strong trend is about to come to an end. This is because these trades are often ...
4
votes
4answers
24k views

Is there a mathematical formula to determine a stock's price at a given time?

I have been trying to find exact information on how stock prices are determined but still I haven't found any exact mathematical formulas how it happens. Wikipedia states: When prospective buyers ...
0
votes
1answer
20k views

How often does a stock price change and where is this defined?

Let's suppose I want to collect stock prices for let's say AAPL on NASDAQ. Where do I find information on how often an official stock price is calculated? Is it every millisecond, every second, or ...
1
vote
1answer
6k views

What do the Sizes on Bid/Ask Quotes Mean?

I have a basic question regarding equities. For this example, assume that I have a quote for KO stock which says the following: Current Price = $39.00 | Bid = 38.99 x 6800 | Ask = 39.00 x 4300 What ...
3
votes
1answer
7k views

Quote driven and order driven financial markets

I know that an order driven market is a financial market where all of the orders of both buyers and sellers are displayed, detailing the price at which they are willing to buy or sell a security ...
-1
votes
2answers
3k views

In a quote-driven market, how do market makers figure out bid/ask prices and bid/ask sizes?

I understand that bid/ask prices and bid/ask sizes are ultimately determined by the market maker. I am curious about some general principles that the market maker follows when determining the above ...
1
vote
2answers
4k views

Bid - Ask / red or green / Level 2 questions [closed]

My question comes just after this questions. That was well answered by the community. Please, correct any wrong interpretation. This is for ToS, but I guess it could help any similar questions for ...
10
votes
4answers
182 views

How do U.S. stock exchanges specifically account for dividends and ex-dividend dates?

At another question about ex-dividend dates and withholding taxes, an answer from Bob Baerker says: Stock exchanges reduce share price by the exact amount of the dividend on the ex-dividend date [...

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