what exactly is Volume per day and who does the ask and bid price for stocks?
Does Volume mean amount sold or purchased by investors?
2007-06-28 06:28:30 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
Okay, volume per day is the total number of shares transferred in a day.
As to bid and ask, there are three answers and they somewhat overlap.
For exchange traded stocks, the bid and ask price are based upon the available offers by other people and institutions based upon the price they are will to pay or require to be received in order to do business with them. If you put an order out there to buy 100 shares of IBM at 50 and you are the high bidder, then the ask will be slightly higher than 50. In some cases, the "specialist," will set the price if there are no bids or asks by the public.
For the NASDAQ, each broker sets a bid and an ask price, the best bid and best ask of each broker sets the market price. Individual customer orders do not matter.
For the ECNs the bids and asks are based upon the best bids and asks out there.
Stocks can be traded under more than one system and generally the bid and ask are the best of all possible prices under the combined systems.
2007-06-28 07:58:05 · answer #1 · answered by OPM 7 · 1⤊ 0⤋
Since every buyer has a seller those numbers are the same and that's the volume.
The market determines the bid and ask.
2007-06-28 13:46:01 · answer #2 · answered by Oh Boy! 5 · 0⤊ 0⤋