104

I don't understand is it possible to buy stock at higher price than current price? This is a very common misunderstanding. Stocks do not have a "current price" that you can buy them for. Any "stock price" that you see quoted is not like a price in a store that means you can buy at that price. Instead, a "stock price" only tells you at what price the stock ...


64

There isn't any place you can put $300 and turn it into significant passive income. What you need to do instead is manage the active (work) income that you have so that your money goes farther, freeing income up for reducing debt and investing. Investing $300 one time won't add up to much, but investing $100 a month will turn into wealth over time. Making ...


50

With an unlimited liability company, yes, in theory, its stock can trade at negative value that will still be capped by personal bankruptcy...in other words, if you own a portion of an unlimited liability company that is worth -$1 million, and your net worth is $250k, you'll just have to file personal bankruptcy and pay what can be recovered from your assets....


41

I set 980 instead of 880 and it is fully executed. Suppose I'm on the other side of your transaction. I might own a stock worth around that $900 price, but have a $980 target. In other words, I'm happy to sell it for $980, so I have a standing sell order at $980. If any bids appear at $980, and I'm a willing seller at that price, I might see my order fill. ...


40

The quote price is simply the last price at which a trade completed.


35

One possible reason is to allow reasonable granularity of price movements. With a price of 20 cents, a one cent change in price would be a 5% change, so requiring higher prices would allow for more granularity and less variance. Sure, computers can deal with more than two decimals of precision, but humans that are used to units and hundredths in most ...


33

I figure that the buyers and sellers cannot be regular people with stocks as they always buys at the bid price and sell at the ask price, so I'm a little confused as to who these buyers and sellers are? This is incorrect. Buying at the ask price and selling at the bid price (you got them mixed around) is called a market order, but it is not the only way for ...


28

To generate a passive income you need lots of TIME or MONEY, you are short of both. As other people have said, do whatever you can to reduce you spending and start saving. Don’t think “I work very hard, therefore I deserve xxx”, start thinking “x cost y hrs of work, is it truly worth it?” (Remember to consider your take home pay per hr, not you before ...


27

The limit order will match to best offer on books. Let's say the best sell price was 900, it will match to that. You will pay 900. Read How do exchanges match limit orders?


25

I may be underestimating your knowledge of how exchanges work; if so, I apologize. If not, then I believe the answer is relatively straightforward. Lets say price of a stock at time t1 is 15$ . There are many types of price that an exchange reports to the public (as discussed below); let's say that you're referring to the most recent trade price. That ...


23

If the stock has low liquidity, yes there could be times when there are no buyers or sellers at a specific price, so if you put a limit order to buy or sell at a price with no other corresponding sellers or buyers, then your order may take a while to get executed or it may not be executed at all. You can usually tell if a stock has low liquidity by the ...


23

You have no guarantees. The stock may last have traded at $100 (so, the market price is $100), but is currently in free-fall and nobody else will be willing to buy it for any more than $80. Or heck, maybe nobody will be willing to buy it at all, at any price. Or maybe trading on this stock will be halted. Remember, the market price is just what the stock ...


21

I know IPO means that particular company, regardless of the country, is offering some quantity of their stocks to the public via stock exchange. An IPO is an initial Public offering. They are taking a private company public. This is the first time that they are making shares available through a "stock market". I also assume (but not sure) that in ...


20

For example, on Jan 29th 2016 the price was reported as £178.21 when viewing over a 3M range, and £12,425.10 when viewing over a 5D range. The confusion is primarily arising because UK equities and stocks are quoted in pence and not pounds. 12,425.10 is in pence so it is £124.2510 And NAV is quoted in USD, so if you convert it back to GBP, you will ...


20

The NYSE used to be public but it merged with Intercontinental Exchange (ICE). The NASDAQ trades under NDAQ. For others, google: "Publicly Traded Exchanges"


17

Here are some plausible reasons why markets might continue to close: Fluidity keeps the market in check. In late night hours there would be less volume, and the markets might be more susceptible to manipulation. In Illinois, USA, car dealerships are closed on Sundays. It's been like that for 30 years and the thinking there is because otherwise the owners ...


17

This is trickier than it might seem. There are a few issues: access, data completeness, and cross-listings vs depository receipts. Access The first difficulty is access to this information. You can try searching at various websites or via Google; however, some of the information is... well, not right. Your best bet is buying data from a company like ...


16

If a company has no assets and significant liabilities, it is bankrupt. With only a slight simplification, the company will be closed down. Any assets will be sold off (though in this hypothetical example, there are none). Any liabilities which cannot be paid off are simply cancelled. Therefore, it makes no sense to claim a company is worth less than ...


15

Will there be a scenario in which I want to sell, but nobody wants to buy from me and I'm stuck at the brokerage website? Similarly, if nobody wants to sell their stocks, I will not be able to buy at all? You're thinking of this as a normal purchase, but that's not really how US stock markets operate. First, just because there are shares of stock purchased,...


14

The simple answer: The opening price is the price of the first trade of the day and the closing price is the price of the last trade of the day. And since the stock price change from trade to trade they are usually different.


14

I don't understand how it is possible to buy stock at a higher price than current price? The price listed on a stock ticker is not an absolute "price." It is simply the price at which the stock has most recently traded at. A trade will execute when books are able to match Buyer to Seller at an agreed upon price. In your example, you erroneously agreed ...


14

It's all in the name: Initial Public Offering (IPO). Before that, it's a private company. If an already public company issues more stock, it's called a secondary offering.


13

EVERYONE buys at the ask price and sells at the bid price (no matter who you are). You need to understand a few important things. An order executes ONLY when both bid and ask meet. (bid = ask) when buying at "market price" = YOUR bid is the lowest ask price on the market. when selling at "market price" = YOUR ask is the highest bid price on the market. ...


13

Yes, this is possible with some companies. When you buy shares of stock through a stock broker, the shares are kept in "street name." That means that the shares are registered to the broker, not to you. That makes it easy to sell the stock later. The stock broker keeps track of who actually owns which shares. The system works well, and there are legal ...


13

The NBBO The price reflects how willing a market participant is to buy or sell at a given price. Imagine you have a stock (let's say IBM): If you had buyer A (Alice) who wanted to buy IBM at $100 she would send a limit order to the exchange to buy at $100. If you had a seller B (Bob) who wanted to sell IBM at $150, he would send a limit order to the ...


12

It looks like GOOG did not have a pre-market trade until 7:14 am ET, so Google Finance was still reporting the last trade it had, which was in the after-hours session yesterday. FB, on the other hand, was trading like crazy after-hours yesterday and pre-market today as it had an earnings report yesterday.


12

In order to see whether you can buy or sell some given quantity of a stock at the current bid price, you need a counterparty (a buyer) who is willing to buy the number of stocks you are wishing to offload. To see whether such a counterparty exists, you can look at the stock's order book, or level two feed. The order book for liquid stocks. The order book ...


12

They aren't destroyed, they are -- in your own words -- "converted". Thus, at the time of sale (which means "now", since you can sell them at any time), they'll have the value of A shares.


12

It doesn’t Dual-listed companies are more complex than you think. They are not a single company listed on two exchanges, they are two separate companies that have claims of the cash flow of the same business under the terms of their equalization agreement. So you can’t buy a share on one exchange and sell that same share on the other. In theory, because ...


11

You miss a 3rd scenario - what if the price bumps up to $12.05, and then drops back down to $11.50? If you wait to do this yourself, and don't have a standing sell order, you could likely miss the window of opportunity. But deeper than that, let's address the hidden psychology in what you're suggesting: "If I personally see the price rise quickly to $13, I ...


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