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6

I thought it might be fun to add more detail on how a trade happens. I used to work as a programmer for day traders, and that was a wonderful crash course on how markets work on the second-to-second level. At its core, a market is a set of buyers and sellers seeking to make trades with each other, and they declare their intentions by making bids (a offer to ...


19

The current quote is $996 x $1000 The bid represents the highest price someone is willing to pay ($996) The ask price is the lowest price someone is willing to sell at ($1,000) As a buyer at the current price, you will pay $1,000 If you want to make $20, your sale price must be $1,020. That means that the bid price must rise 2.41% (24/996) in order for your ...


13

The ask price is the price the stock is sold at, and the bid price is the price people are willing to buy it for. So when you bought the stock for $1000, and you want to sell it for $1020, then that would happen as soon as the bid price is $1020. However, the bid/ask spread is not a constant. So when the bid price is $1020, then the ask price is not ...


3

US Accounting standards as in GAAP (Generally Accepted Accounting Principles) are only used in the US, hence the name US accounting standards. The international standard is IFRS (International Financial Reporting Standards). IFRS is followed in over 120 countries, including those in the European Union (EU). [1]. IFRS is used in more than 110 countries ...


3

Can I buy 50%+1 stocks of PST in order to become the owner? It depends on what you mean by "become the owner". With 50% +1 of the outstanding shares you can control any shareholder vote (and get 50% of dividends etc.). There are still corporate governance laws and regulations in most countries, though, that may prevent you from drastic measures, ...


3

ADRs are not options, they are certificates that are traded independently. Therefore, ADRs in this regard are pretty much like a stock that is traded on multiple exchanges. Supply and demand determine the price and arbitrage makes sure that prices do not diverge too much


0

Why are there no buy uptick and sell downtick orders? I think the textbook is looking for this answer: These order types increase volatility, which is undesirable. If buy uptick orders were widely used, a single uptick could cause a huge cascade of buy orders, which could cause the price to rise more than it would without such orders. Similarly in the other ...


2

According to Reliance's Investors' Handbook and "Shareholders’ Referencer", the security trading on the London Stock Exchange is a Global Depository Receipt (GDR)†. Looking at the GDR's page on the London Stock Exchange website, I see: RIGD GDR (EACH REPR 2 ORD INR10 LEVEL1)(144A) Similarly on the Frankfurt Stock Exchange's website: RELIANCE ...


17

First, you're probably not going to get 5:1 leverage in the stock market. In the US, if you're holding the position overnight, you're limited to 2:1 leverage by Reg T. If you are a pattern day trader, you can get intraday leverage of 4:1 but that assumes that you're closing your position at the end of every day. Other countries may will have different ...


0

Liquidity is great, if you need it. One of the main drawbacks is that there can be increased volatility and wider bid-ask spreads at the open, as the cash market reacts to overnight events and futures trading. At the close, trading is dominated by institutional investors. If you want to use a rule to avoid regrets from placing your order at the "wrong&...


2

The simple answer is that none of those statements are guarantees, they're simply rules of thumb. stocks move in opposite direction of interest rates This is not always true, for example right now longer term (10-year) interest rates have been creeping up because the market expects some degree of inflation down the road, and yet stocks as measured by the S&...


2

Most days, the opening 1/2 hour to hour tends to be more active because of the volume of news stories overnight. Volatility is a trader's best friend. But that doesn't mean that it's the best time of the day to trade and the remaining hours should be ignored. You should buy and sell when your price is available not based on some predetermined list of ...


1

Note that the $10.51 price could be misleading because: It is the price of the last trade that happened about two weeks ago (on 2021-04-09). The stock is illiquid ($10.00 bid for 100 shares, and no offers). As @SRiverNet mentioned, the actual IPO price could be different from the estimate of $18 to $20 per share. Indeed, that was what happened. One day ...


0

It can be done using bunching, which aggregates odd lot orders together as block trades, executing the odd lot orders as one transaction. The order management system usually handles this process.


0

Without studying the financials and more information about the company it is difficult to gauge investor reaction to the IPO. My guess is that its current price is only a reflection of the news it was planning to go public on the NYSE, since the stock was trading down around $2 prior to November of 2020. What the offer price is now doesn't mean it won't ...


2

It is common for private placement investors to be able to start trading at least some of their stock right away, while employees usually have restricted shares that cannot be traded for some period of time. When I worked in the business we tried to get our private placement investors to follow a disciplined exit strategy so that they could sell shares ...


0

the 1 million shares are what is traded sometimes there is a separate lockup where employees can sell some shares first but it’s usually not that much, but enough to flood the market for 1-2 days or if there is big buying it can still go up sometimes even a few days after an ipo some more shares from employees are released but this is rarer


1

Do OTC stocks trade similarly to their foreign exchange equivalents? For F shares (such as DYLLF), the answer is "yes". For OTC stocks in general, the answer is "no". I'm sure that the discrepancies are caused by faulty data. The faulty data is likely caused by Deep Yellow's 1-for-20 reverse stock split in March 2017: January 2017: ...


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