Sentences with phrase «illiquid stock»

The OP asks if there is a scenario when he / she wants to sell and no one wants to buy or when he / she wants to buy and no one wants to sell, then the limit order provides this scenario, especially in illiquid stocks.

@reirab - at no time does the OP mention market orders, and I specifically mentioned how you may not be able to buy or sell at your specific price with illiquid stocks using limit orders.

Trying to sell illiquid stocks on the market in a hurry can obviously be costly.

Trying to sell illiquid stocks on the market in a hurry can obviously be costly.

I think illiquid stocks sometimes take a little longer to react to news that is more quickly priced into liquid stocks.

I think illiquid stocks sometimes take a little longer to react to news that is more quickly priced into liquid stocks.

There is nothing wrong in accepting a loss for a trade that goes against you for a stock that is more promising, but firstly your normal advocacy is to buy more of a falling stock, and secondly your investment plan should keep you out of illiquid stocks.

Without describing them, here's the history: Reg S, Calendar trading, Mutual fund timing, Death spirals, Front running, Pump and Dump, manipulating illiquid stocks, Ponzi schemes, and inside information.

With the mean time from funding to exit for a startup increasing from 2 - 5 years in the early 2000s to an average of 6 - 10 years today, an employee may hold illiquid stock for quite some time while undergoing major life events such as marriage, birth of a child, home purchase, or graduate education.

They would not get involved in such a tiny and illiquid stock if they did not see 100 % + upside.

* Finally, MediciNova is an extremely illiquid stock that most Avigen stockholders would find difficult to trade in the open market without significantly depressing the price, which warranted concessions.

An obscure illiquid stock on a weird exchange sounds like the rights ingredients for a cheap valuation, and on the surface that seems to be the case for TABS Holland as well.

But that gain was more than offset by the lesser benefit from excluding the most illiquid stocks.

I didn't immediately see any, but that didn't surprise me; illiquid stocks like Regency can make significant price swings on just a small amount of volume.

This could be sold or bundled into a REIT and spun - off to current shareholders (let's hope for the former... I really hate illiquid stocks that are not core to my investment thesis)

This larger tender would offer a potential exit to all non-HBG Holdings (& friends / family) shareholders, from what is effectively a small illiquid stock, where AUM hasn't grown in some years, and there's still no sign of a sustainable / positive return on equity.

Since closed - end funds do not have that requirement, they may invest in illiquid stocks, securities or markets such as real estate.

These kind of big differences generally only happen on small exchanges with illiquid stock that is rarely traded.

People use this as evidence that controlled, illiquid stocks can be bought out from under you.

Are mispricings more common in special situations, complex situations, and with illiquid stocks?

So, it's not something they're going to do in an illiquid stock with any sort of bid / ask spread.

As you can see the price does move just like most stocks, and the average daily volume is over 1 million per day, so it's not really an illiquid stock.

Moreover, Morningstar had to make sure that its new indexes were truly investable, which meant eliminating small, illiquid stocks and rebalancing quarterly rather than in real time.

In addition, only half of the cash reserves can be from these illiquid stock accounts.

Illiquid stocks can have large spreads between the bid and ask prices which makes them costly to trade.

In case you buy an illiquid stock, you could need to wait for some time to sell the share, just to find a buyer.

They could easily set rules that allowed the vast majority of swaps — like mutual funds, or stocks above a certain volume threshold, while keeping out the illiquid stocks that are the target of the new tax.

It is generally not advisable to use market order on illiquid stock.

Are you saying that if there is an illiquid stock and you put an order to buy or sell the market maker will make a market in the oposite direction so your order will go through?

@keshlam - if you are buying into such an illiquid stock in the first place I don't think you would have any investment strategy, you would be purley gambling.

It's plausible to believe that other things equal, people would rather have a liquid common stock than an illiquid stock.

So only someone looking to lose money would use a market order to buy or sell an illiquid stock.

So if someone places a limit order far from the market price of an illiquid stock that order will not be executed by a market maker and it will be left in the market possibly until the order is cancelled.

You may not notice this in liquid stocks, but in illiquid stocks and other illiquid assets, this is definitely a factor.

These include: spin - offs, stocks emerging from bankruptcy, net cash stocks, net - nets, near net - nets, illiquid stocks, over-the-counter (OTC) stocks, and stocks that don't file with the SEC.

Are mispricings more common in special situations, complex situations, and with illiquid stocks?

If using a market order - yes you will buy or sell, but in an illiquid stock with a large spread you will get a very bad price for it, likely more than 10 % away from the last traded price.

On a illiquid stock, such situations do arise and there are specific mechanisms used by exchanges to match the order.

You should look at small stocks, illiquid stocks, obscure stocks, spin - offs, etc..

Plus if dealing with an illiquid stock it would be quite stupid to place a market order.

Any study that doesn't deal with small and illiquid stocks is highly suspect.

Buffett started buying this illiquid stock in the 30's, and bought all the way up to 100.

You may also opt for a specific comfort zone — which could mean you prefer to avoid foreign stocks, small / micro-cap stocks, illiquid stocks, etc. [Though it can be rewarding to carefully stretch your investment boundaries].

Filed Under: Daily Investing Tip Tagged With: illiquid stocks, Investing, Investing Tips, liquidity risks Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Applying this rule to small or illiquid stocks is problematic, because the share price is more prone to larger swings as investors suddenly have to sell.