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Hiram-Anthony
Joined: 08 Nov 2007
Posts: 2013
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 Posted: Tue Dec 11, 2007 5:22 am Post subject: If the Bid price for a stock is $6.00 and the Ask price is $ |
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If the Bid price for a stock is $6.00 and the Ask price is $6.31, how much can I purchase the stock for?
In regular day trading? In Pre/After Market trading? |
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Gangsta
Joined: 08 Nov 2007
Posts: 2145
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| Posted: Tue Dec 11, 2007 5:22 am Post subject: If the Bid price for a stock is $6.00 and the Ask price is $ |
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If you place a market order, you must pay the ask price. If you place a bound order, you must pay the price you set if a market maker is wanting to accept your price. In your example, you may set a bound price of $6.20 or $6.05 or anything else. The $6.20 offer can be executed but the $6.05 most likely not because it's so far from the ask price.
The $0.31 cent spread is rather large, implying that the market for the stock is thin and the stock can be notional. Many shares of widely traded stocks now have a spread of only one cent. |
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Wilfredo h.
Joined: 08 Nov 2007
Posts: 2149
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| Posted: Tue Dec 11, 2007 5:22 am Post subject: If the Bid price for a stock is $6.00 and the Ask price is $ |
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| The Bid price is what the market maker is wanting to pay for stock offered for sale. The Ask price is what the market maker is wanting to sell it at. The price will most likely be something above the ask price because of commissions and possibly the size of your order, e.g. if you purchase less than 100 shares you have to pay a fee to an odd lot broker. |
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Adrienne Atkins
Joined: 08 Nov 2007
Posts: 2162
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| Posted: Tue Dec 11, 2007 5:22 am Post subject: If the Bid price for a stock is $6.00 and the Ask price is $ |
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| $6.31 |
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