Originally Posted by
Ponda
Phaedrus, you are helpful as always, thank you.
Here comes another one.
I use an on-line system (the National Bank one). When it comes to purchasing a share you can see it go onto the depth chart. However, sometimes you end up owning the share for a cheaper price than what you have put your buy price in for.
i.e XYZ you want to buy at $5.00, you place your order of 1234 shares (it's a random number and so you can assume that there are not too many buyers out there wanting exactly 1234 shares. You see a trade go through of 1234 so it is safe to believe it is your order, however, you have got them at $4.97. Does that not disadvantage the seller who only gets $4.97 for their share when there is a buyer out there prepared to pay $5.00.
And I guess that leads to the next question is that if I really want that share and I put an order in for $5.50, will I then get it for $4.97 or $5.50.
Is that why at the start of the days trading you often see the bid at $5.50 and the ask at $5.00. Is this done to ensure that the buyer is first in the queue.
Just my ponderings for the day.