If some stocks are not accessible to buy at times, when I put a sell price limit on them, will there be trouble fulfilling that sell limit too?
2007-02-10 01:16:03 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
Yes, that's called "an illiquid, thinly-traded stock". You can put in a higher limit on the buy or a lower limit on the sell, but then you're getting ripped off by the market-maker something like 1%.
2007-02-10 01:19:29 · answer #1 · answered by alex 2 · 1⤊ 0⤋
No matter how good the stock analysis looks if the market isn't enthusiastic about it and isn't buying/trading it, I wouldn't touch it. Before you buy a stock always make sure it has enough open interest or make sure it has high trading volumes so that if you want to sell it, you will manage to do so a lot easier than if the traded volume wasn't high.
2007-02-10 09:24:28 · answer #2 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋
Difficulty in buying and selling stocks is usually experienced when the liquidity is limited and when it is either making a top or a bottom in its price graph. When it is peaking, it is difficult to sell and when it is at the bottom, it is difficult to buy.
Look at the volumes of the stock before taking a position in it. that will indicate the liquidity.
2007-02-10 09:26:02 · answer #3 · answered by Swamy 7 · 1⤊ 0⤋
Yes, there are a number of stocks that are very thinly traded. I've seen it referred to as "trades by appointment only".
2007-02-10 19:56:27 · answer #4 · answered by Quixotic 3 · 0⤊ 0⤋