In the BID and ASK prices, how important is the size; i.e. 10.00 (200)?
Answers: The importance depends upon the liquidity of the security. Usually, for an individual investor, it is not very important. However, for some securities in can be important. An example is the stock BDMS. If you look at the historical prices
http://finance.yahoo.com/q/hp?s=BDMS
you will see that there are usually less the 500 shares traded per day, but that the stock price may move over $1.00 (over 5%) on a single trade of 100 shares. If I see an ask price of $20.00 with a size of 100 shares, I better not put it a market order to buy 1,000 shares. I might end up buying 100 shares at $20.00, 200 shares at $21.00, 200 shares at $21.50, and 500 shares at $25.00.
On the other hand, if I see an ask price of $20 with a size of 100 shares for INTC, I would not worry about using a market order to buy 1,000 shares. I might end up only getting 100 shares at $20.00, but I could be pretty sure I would not pay more than $20.01 for the other 900 shares.
The difference is that INTC is a very liquid security with many shares traded every day.
it means if the current price of the stock is:
$7.00
The ask price is $7.01(100)
This means if you buy 100+ shares the stock will go up to $7.01. If you buy less than the amount in the parenthisis then it will stay the same until enough people have bought at the ask price.
The bid/ask sizes are simply a representation of the # of shares available at a givin price.
If there are 200 share available at 7.01 and you want to buy 500 shares, then you would most likely get a partial execution at 7.01 and then the remaining shares would be purchased at the next best available price. If you place a limit order with an all or none requirement then your order would not get executed because you've stated that you want all 500 shares at 7.01 or none at all.
Hope this helps.
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What is a angelic stock to purchase?
I have $120 to spend...what is a honest stock to purchase to make money?Answers: No and No. You cant buy bank yet and especially do not buy right in a minute if you only enjoy $120. The reason why you dont not buy bank right now is , very well i could write a book, but to be brief: the fed hasnt react quick ample. The liquidity trap will continue. We havent see that last of the bank problems! the latest issue is that the bank are counting on the hedges they bought against the subprime transcript they purchased in valise this meltdown happened. However, the companies that issues these muni and CDO bonds (like MBIA for example) may be going out of business! this finances more write downs for banks! Dont buy even so especially as a small investor. The mutual funds and institutions arent even buying yet. Wait dally wait.
try http://www.goldenbullstocks.com
What's the better indicator of S&P returns, one beside or short dividends?
If you want to see how the S&P did as a benchmark, is it better to include reinvested dividends or just price appreciation? I be thinking without dividends since firms could more smoothly manipulate dividends. What do you assume?Answers: I follow your logic and your point has merit. However, I mull over your choice to exclude dividends less so if what you are really measure is returns. Yes, you want to see the capital appreciation of a benchmark but you state your chosen measure stick is returns and just unsure if near or without dividends. If your focus is on the subject of returns and not a benchmark of overall market appreciation after a return is a return, is a return, is a return! Why does it matter if the dividends be manipulated? If you do not include dividends, aren't you failing to including money coming hindmost at you as a return which really is what your question is trying to device?
If you wanted to know how much a commission paid, and nearby was a substructure salary and commission, you'd want to count both, right? A dollar is a dollar, no thing how it gets at hand.
Similarly, you want to consider the TOTAL returns, including dividends.
Count the dividends just similar to you count the interest in your money account.