>> Ok, so it looks like I would have to pay 4.44 a share to buy? And if I >> wanted >> to sell, I would only get 3.01 a share? It seems like the stock would have >> to >> go up quite a bit before I even broke even. Is that correct? > >Typically you can put in a buy order to buy it when it hits the number >you want, which it may or may not ever reach. > >The stock market isn't a set of "prices" like you'd see on a store >shelf. It's more like an auction where you (and a buncha other >people) are bidding on an item, and someone else (and a buncha other >people) are barking out prices they are willing to sell something for. > Only when two individuals meet on price will a transaction occur. >...and just because someone offers a price that matches yours doesn't >mean you will be the one who gets it. > >The "price" you see on the news is just the last price two parties >agreed on. There were a buncha transactions before that, and they all >probably had different prices. > >So you can usually say "attempt to buy this stock when and if it >reaches $3.46". But the parties offering to sell the stock may keep >going up in price and you never have an opportunity to buy at $3.46. > >The same goes when you want to sell it. You may see on TV that the >stock was "at" $5.34 at closing, but that doesn't necessarily mean you >can find someone to sell it to at $5.34. You can say "attempt to sell >this stock to someone at $5.34", but there may or may not be any >buyers at that price. > >Just because someone bought/sold it for one price yesterday, or an >hour ago, or one millisecond ago - that doesn't mean you can get that >same price. Even one millisecond later. > >-Came
Thank you. That helps a lot with my understanding. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Want to reach the ColdFusion community with something they want? Let them know on the House of Fusion mailing lists Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:298399 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
