MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Is the price the price, take it or leave it or do people negotiate over the price?
Does there have to be a buyer for you to be able to sell or does "the company" promise to buy all shares if required?
Cheers.
please.
Buy high, sell low.
Oh, hold on....
Cheers CFH, I guess it's a bump at least.
Prices for fully- or AIM-listed companies are made by one or more market makers, not the company itself. A spread will be published - e.g. 102p-105p, where 105p is the price you buy at and 102p is the price you sell at. If the spread is very wide, your stockbroker may be able to negotiate with the market to get the deal placed inside the spread; e.g. selling at 103p or buying at 104p. For companies with tight spreads (any FTSE100 companies), no negotiation will be possible.
You can trade using direct access (you can on US markets - not sure about UK) where you buy and sell directly so you can place any price to buy or sell that you like. Often people place prices way outside the spread just in case someone miss clicks and you get a deal.
You can leave limit orders with most stockbrokers; "I've got 1000 shares in ABC plc, currently priced at 102p-105p, that I want to sell at 110p". If the prices rises to 110p, your order will be filled. There are usually fees for this service though.
cheers guys.
So, does there have to be a buyer or is it absorbed into the "system"?
The market makers offer prices to buy & sell stock ("making a market"), but they do not have to have a buyer in order to accept stock from a seller. They will publish an order size with a quoted price; for instance 20,000 102-105p 20,000, meaning they'll buy up to 20,000 at 102p. If you're selling more stock than there is capacity for in the market,then you might have problems, but this only really happens with really illiquid, low-volume stock. All depends on what shares you've got & what listing they have.