Let's assume there is a listed company x. Currently it has 100 shares issued to trade in free float market. Current price of stock is let say 10. Now please let me know if I purchase one share of company x at the market price of 10. How it will effect the stock price. And please add and exemplify some other scenarios whichever you find good to explain more. For more information let say promoters of the company holds 100 shares with them like 50% of the company is with promoters and the other half is with people who invest or trade in that company. If I've missed to tell or assume any other vital info. needed please assume it yourself while mentioning it. I want to go deep down into the concept of demand and supply. How technically it happens. Thank You
123683
Let us assume there is a listed company x. Currently it has 100 shares issued to trade in free float market. Current price of stock is let say 10. Now please let me know if I purchase one share of company x at the market price of 10. How it will effect the stock price. And please add and exemplify some other scenarios whichever you find good to explain more. For more information let say promoters of the company holds 100 shares with them like 50% of the company is with promoters and the other half is with people who invest or trade in that company. If I've missed to tell or assume any other vital info. needed please assume it yourself while mentioning it. Thank You
17155
As a follow up to my other , I would like to know whether the following is possible:  I have $20,000 in my brokerage account The price of a call option with $300 strike price is $5.00 (1 contract = 100 shares) I buy 20 contracts of these $300 calls (cost is 20 * 5 * 100 = $10,000) The price of the underlying goes up, making my option in-the-money  I decide to exercise my options. Exercising my calls means that I buy 20 * 100 = 2,000 shares of the underlying at $300 per share. However, I only have $10,000 left in my brokerage account and am unable to pay for the shares (2,000 * 300 = $600,000). What now? How does this work? Do brokers recognize that my position is profitable, and buy and sell the underlying for me as soon as I exercise my calls? In other words, do I need to worry about being able to pay for the shares of the underlying if I decide to exercise my options? Can I just take my profit without bothering with the shares at all?
121776
I'm trying to learn about stock markets. I eventually want to invest a small amount over a long period. Yet, I notice on a lot of broker sites that they tend to charge an overnight fee for any stocks held over night. I presume this is every night thereafter?  I just wondered because it seems like a wall when you want to let your stock price grow, and an overnight charge eats into this. or, is this only the case for "CFD" stocks? I'm confused.  Any help?  Cheers
28134
In the United States, whenever a customer places an order, will the broker always execute that trade on the market?  Do brokers just maintain a "reservoir" of popular stock, and hand them out to customers at market price instead of going to the exchange?  In other words, do people ever just buy/sell assets from their broker, instead of through their broker?
72539
I'm following an automated trading system. It gives me buy/sell signals periodically. I usually just add/subtract 0.5% from the current price (as reported by Google Finance) and buy/sell.  Last Monday, I did the same, but apparently the stock I was trying to sell fell in price quicker than my broker could sell it at my limit price. It fell about 3%. I wouldn't have minded selling at 1%, 2% or, frankly speaking, any percent lower. I just don't wanna hold on to it.  So, should I just use market orders instead of limit orders? Will it cost me more money to use market orders than limit orders with my current +/- 0.5% formula?
48409
First, my understanding is that the long-term capital gains tax rate is 0% for those whose marginal rate on ordinary income is 10% or 15%, and (ignoring the highest 39.6% bracket) the rate is 15% for everyone else. (See  and .)  My interest is in what happens at the crucial break between the 15% and 25% bracket, which is $73,800 for married/joint returns in 2013 (and presumably will be higher in 2014, though I haven't been able to find out what that is or if it has even been set yet). Let's say a household has $64,000 in wage income, and sells stock for a $10,000 profit.   Does their income for the purposes of establishing their tax bracket go to $74,000? If so, is the entire $10,000 profit subject to the 15% long-term capital gains rate? Is any part of the wage income subject to the higher marginal tax rate?   Since the amount of income subject to the higher marginal rate is, well, marginal, part 3 seems somewhat less important than part 2. The real issue is whether the capital gains rate hits the entire profit, since, in that case, it seems the household should only sell enough stock to generate a $9000 profit, and sell the remainder in a future year.
34896
I'm trying to wrap my head around short selling. Online the explanations i found talk about borrowing a stock from your broker, selling it at a high price then waiting for the stock to drop in price and buying it back for that low price, so you can return the stock to its original owners and pocket the difference, this i get. my question is, how can you sell something that you borrowed, how can you sell something that is not yours. like for example if i borrowed my friends car, i can't sell it because i wouldn't have the pink slip, so how can i sell stocks that i don't own? Thanks in advance.
67684
Are stock returns based on market wide returns? When there is no new news released about the specific company, prices still rise or fall based on the market. When would a stock's trajectory diverge from that of the market?
118866
Lets say I buy a share of Apple stock. When you talk about stock, you say you are buying a small amount of the company. How small would 1 share of apple stock be at the moment you are answering the question?
9808
When I place my trade order in the stock exchanges, I know the price matching happens and only when there is a buyer and seller at the same price a trade happens.   But how does the quantity matching happen? For example, if I want to buy 1000 shares at $100, but there is only one seller to sell 10 shares at $100, what happens then?
109451
For a given company ABC, which is listed in PSE, DEU and ASX. Are the shares being offered in DEU the same shares being offered in ASX and PSE? What's the difference if a person buys it in DEU versus if he buys it in ASX?   Apologies in advance, as I do not have an official/full background on stock trading markets.
16784
If you start with $100K, and you get a 50% gain, it's $150K.  Then, you get a 50% loss: now it's $75K. Reverse the order (i.e. lose 50%, gain 50%), it's the same thing (a 25% loss).  So, 50% up then 50% down, or 20% up then 20% down, you don't get back to "even"; it's a loss.  My question is: how can one make this notion work to their advantage, instead of to their disadvantage?  I'm wondering if you have any strategies/thoughts/ideas on how to make this effect work for you, instead of against you. Or is my thinking on this as a strategy somehow incorrect?  The effect seems to diminish with lower swings in returns.  E.g. the +20% / -20% case, results in a 4% loss.  I.e. 100K -> 120K -> 96K.  Not clear what the formula for it is, but it's not linear.
71944
I purchased 1000 shares of ACB stock a little over a year ago. I have now learned I have only 83 shares of stock. How can the company take away over 900 shares of my stock?
86733
Let us say for example that I have 27 shares of stock X (there really is an X but its identity is not relevant).  In this example, X does a 5:1 reverse split. How many shares do I end up with. If I have fractional shares, what can I do with them?
14993
I am interested in the mechanisms which a company can use the money that investors give them when they buy a public stock since they are being bought and sold constantly. How can a company spend other people's assets when the shareholders still own their stocks and they still retain a liquid value? To me it seems like stocks are a case of "having your cake and eating it too".
61008
If a company can lower the dividends and even stop paying them at all during hard times, why would they re-install them at all?  If I understand correctly a company pays dividends so that investors that buy stock from that company have a bigger motivation to do it and then get more people to invest in the company. But once the stock is sold and no more stock is being issued, what does the company gain by paying dividends? It seems paying dividends would only raise the price of the stock, what does a company gain by raising it? Would it make more sense to lower it and buy that back?
46110
Is stock price determined only by the last trade that takes place?  For example, if a stock I own is trading at $3.42, and I place a Sell Limit order for $0.00, will the stock price temporarily dip to $0.00?  Likewise, if I place a Buy Limit order for $100.00 for a stock that is trading at $1.23, will the price spike to $100.00?  Is there some sort of "average price" that is reported on the stock ticker?  Thanks for your help in understanding this!