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Green Stocks |
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Rule #1 - Do not lose money! Rule #2 - Never forget rule number 1! ( by: Warren Buffet )For comments or questions please email: : admin@equityresearch.com |
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Bid and Ask PricesWhen you see a stock quote there is a bid and an ask price. The ask price is what you can sell the stock for and the bid price is the buying price. You will see that there is a difference between the two. The difference is called the spread. It is an underlying fee for any transaction that pays for the trade execution.Most people think the trade is done immediately, but it is actually delayed. It depends on how your broker decides to execute the trade. Firms do not have to guarantee a quick trade. If firms advertise their speedy execution, they must also disclose that there can be delays. If you are comparing firms, ask about how they get price improvements on customers orders. Brokers can execute orders making them more expensive or less expensive. The reason is that some market makers are more expensive to go through than others. The firm may also fill an order internally and make their own money on the bid and ask spread. Brokers may also go through a third part to execute the orders and this costs a little bit more. One thing to keep in mind is that the market has more jumps during the night than during the day. If you execute a trade when the market is closed, it can often result in that you will pay a higher price for the trade. |
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