Stockmarket trading explained?
I am trying to get my cranium round what is a buy or sell contained by AT trades. For instance, in a small company, a huge amount of shares are shown as a sell, who have aquired them, has someone bought them? Then it would it not also show as a buy?Say this small company shows lots large sell, is someone buying them, or is a broker keeping them.
It is difficult to explain, but basically if their is a broad discrepancy between buys & sells, where on earth does the difference go? I thought that for every hawker, there must be a buyer, but it does not show up that instrument.
Answers: Presumably you are looking at non-SETs?
So these would be market driven. i.e. the MMs brand the market /price. It is not/cannot be completely transparent. The MM might be taking the stock or hold a potential buyer lined up. The barter is not specified as a buy or sell- don't trust the blue or red colours on a pricing system. The only opening you can 'prove' a price is by dealing.
Say a quote is 95-100 and a trade goes through at 96. There is no instrument you can know if that is a buy or a put on the market.
Also you have to know the bazaar; sometimes the worst price quoted on the screen is the best MM to accord with! The difference you ask roughly speaking is called the spread or jobber's turn, which explains where on earth it goes to! Usually a cavernous spread will indicate leack of volume and a close spread an active stock, sometimes the closing up fof the pread will indicate a movement up or down.Send some question to http://www.shareworld.co.uk
MMs do keep shares or may be short. Brokers don't customarily hold stock unless they are dealing as principle.
Stock trading only shows the get rid of and buy price of shares,not how many hold been bought or sold.
No,brokers dont "hang on to shares".
The disparity you see between buy and sell share prices (bid contribute spread) are set by market maker.The sell price is other going to be less than the buy price.The notch varies according to forces affecting the flea market at that time.
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In what is good to invest now in USA. Stocks or property or something else?
Answers: definitely not property unless you really know what you are doing.
Stocks are a big risk right now, but there are always ones that do well when the market goes bad (which I think is very likely this year).
Personally, I think commodities are a great place to be right now. You can buy eschange traded funds that invest in commodities like any other share of stock, but they are based on the prices of the underlying items, rather then companies.
If you do like company stocks, I'd stick to safer companies that pay a large dividend and have that re-invested. That's a safe winning strategy in the long run.
How long to you plan to keep the money invested?
10 years? If so, stocks are fine.
3 months? Like the guy who bought $100,000 in AAPL at $177 on his credit cards? And found it trading at $125 now? Well, stay out of stocks.
What are some of the effects that widening credit spreads have on financial markets?
Answers: It will make it more costly to borrow money which hurts any company or municipality that borrows money.