It's a big company, they have a lot of shares out, and the price is really low, usually between $2 and $3. Other companies with similar market caps have stock prices at least 10 times higher, meaning there are only 1/10 the number of shares out. A 1000 share trade of LU at $2.30 is the same dollar value as 100 shares of another company whose stock is $23.
Also, LU will likely be acquired by Alcatel, so there is trading activity related to that.
So LU often leads the list of active stocks by share volume, but it does not lead in terms of $ volume traded.
2006-08-28 04:38:29
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answer #1
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answered by Y Answerer 6
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2016-02-16 03:02:49
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answer #2
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answered by ? 3
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I use to work as a trader, or market maker, for an ECN (electronic communication network). Although I still don't quite get the reasoning for what we did, the official reason for ECN's is to create liquity in markets so the public could buy and sell in a more liquid market. Our company would charge (.004 cents per share traded) to whoever offset our buy/sell position-usually like Customer at Merrill Lynch, Smith Barney etc. However, and this is the part I personally don't get, we would look for stocks with a low price and high volume already for stocks we would trade(we were paid by the volume we traded minus the loss we would incure. If we traded 1M shares a day, and only lost 1k in that day and did so consistantly, you would make over 100k yr). So how that benefited the markets, I just don't know (making a market in something that already has high volume) how the SEC really could justify our position. But to answer your question, the high volume of trades in LU is due to traders just buying/selling to make the .004 cents per share.
2006-08-28 06:57:23
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answer #3
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answered by jazzzame 4
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The NYSE has experts, jointly as NASDAQ relies upon upon NASD individuals to make 2-sided markets (the two a bid and an ask) interior the subjects they commerce. regularly, there is an institutional or public investor prepared to purchase or sell at costs close to the final commerce, yet whilst no longer, the professional is charged with making orderly markets. whilst i became a industry maker on the floor of the CBOE, we weren't in elementary terms required to make 2 sided markets in all ideas in our pit, however the width of those markets coudn't exceed standards set by using the replace.
2016-09-30 02:16:46
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answer #4
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answered by Anonymous
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2006-08-28 13:18:53
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answer #5
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answered by stock_trade_expert 3
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2016-02-14 17:35:35
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answer #6
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answered by ? 3
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2014-03-28 23:09:29
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answer #7
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answered by sakill 2
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