please help me understand this. If for example stock closed at $10 a share, can i negotiate to buy the stock at $9.50 with my stock broker or do i have to just stick with what ever the market says? is there a such thing as negotiating for buying a stock?
2007-11-13 01:41:50 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
can't really do that ... except ...
you can put in a limit order at 9.50
such an order does nothing until the stock trades down to 9.50, after which it automatically converts to a market order ["buy now"]. If the stock doesn't trade down, you'll never be filled.
***
brokers only match offers from buyers and sellers -- there is no bargaining.
2007-11-13 01:50:58 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
The stock market exists to merchandise stock. People want to buy stock. Other people want to sell stock. Thus, there is a constant process of negotiation. Note; "bid", what buyers are offering to pay and "Ask" what sellers are asking to sell. You can not negotiate with a broker as the middleman has no stake.
You are wanting to buy the stock at a 5% discount to the current price. Whether this is possible depends on many things, incuding, but not limited to: Has the price been trending up, down or sideways? Is the price volatility such that there may be someone willing to sell at a 5% discount to get out? Is the 5% discount that you seek based on research or simply a whim and a desire to get something for nothing?
As others have suggested you can try by placing a limit order. Can you get it for less than $10.00? it all depends. Good Luck.
2007-11-13 13:15:44 · answer #2 · answered by Timothy C. Schewe 2 · 0⤊ 0⤋
The market prices are determined by supply and demand so you can't negotiate price. However, you can put a limit on the price. For example you could place an order to buy the stock at 9.50 and if the price dropped to 9.50 you would automatically buy it.
2007-11-13 09:59:35 · answer #3 · answered by jbcwill1 2 · 0⤊ 0⤋
Yep, on most websites (and with brokers) you can actually place an order to purchase a specific stock at a specific price, and you can put a time frame on it. If the stock drops to your price at anytime during the time frame, the computer will automatically purchase the stock on your behalf. As always, you have to pony up the money quickly, or already have it in your broker's hands.
2007-11-13 09:51:45 · answer #4 · answered by scottclear 6 · 0⤊ 0⤋