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  #1  
Old 09-23-2012, 06:16 PM
shibalbr shibalbr is offline
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Join Date: Sep 2012
Posts: 23
Default bid and ask

The stock price of TESTB is currently $10.00 bid, $10.05 ask with the last trade at $9.99. If you place a market order to sell 100 shares, at what price is your order most likely to be filled? If instead you place a limit buy order for 100 shares at $10.02, what are the bid and ask prices immediately after you place your order?

My approach:

9.99 --> order will be sold by 9.99 as it is cheaper than the market.

if limit 10.02, the prices will not change as to buy I have to use ask of 10.05.

is it right?
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  #2  
Old 10-16-2012, 12:09 AM
Fredy Atwater Fredy Atwater is offline
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Posts: 516
Default Re: bid and ask

Shibalbr hi :

Are you an experienced investor ?

Go for it if you have done your research and you have the cash to invest. If the market goes down after you buy , buy more. The average price that you pay will also go down.

If your'e 100 % sure about the company your'e buying and you think the stock is cheap go for it. Experience will tell you in the long run if you were correct. Make adjustments as you invest. You sure got the brains. Just put it to practice. You can do it.
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