Question about buying shares of a stock.?
I have some stock. I called the brokerage house and was going to purchase some more and they said the price may change on Monday and that today is a Saturday. I am confused. If I go to the brokerage website I see what the shares are selling for . Why is it if I purchased some today on a Saturday I may not be paying that amount come Monday. Very confused. Thank you.
- SumDudeLv 72 months ago
With today's computers stock prices can change by the minute.
- JudyLv 72 months ago
because the market isn't open until Monday so the transaction can't be done until then.
- zman492Lv 72 months ago
<<<If I go to the brokerage website I see what the shares are selling for>>>
Not really. You can see what price was paid the last time someone bought some shares, but not what price will be paid the next time someone buys some shares.
When someone wants to sell shares of a stock the seller tells the brokerage the minimum amount he will accept per share. When someone wants to buy shares of a stock the buying tells the brokerage the maximum amount he will pay per share.
If the price the seller specifies is less than or equal to the price of buyer specifies the shares will be sold. Otherwise, the orders are left outstanding until they are cancelled or the trade can take place at the specified price.
Instead of specifying a dollar price for a trade a person can specify "market" which means the best price available at the time the order reaches the exchange.
Suppose on Friday the last trade of stock XYZ is at $15.20. The brokerage will show the last trade was at $15.20. If on Saturday I put in an order to 100 shares of XYZ at the market price the order will be filled Monday morning when the market opens. At that time lowest price someone is willing to except for shares might be $15.30 per share, so that would be the price I pay. It is also possible, although less likely, that I could pay $15.09 per share. It all depends on the amount someone is willing to accept for the shares
- Spartacus!Lv 72 months ago
You can only purchase shares when markets are open. They aren't open on Saturday and Sunday. You have to wait til Monday to place an order, and will have to go by the Monday price.
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- 2 months ago
So others have told you why the price might change but you could place a Limit Order with the brokerage, that is, let them know the maximum you're prepared to pay per share and then on Monday if the shares reach that price then you will get your order. You can place that order today even when the markets are closed unless your broker is a moron.
- StephenWeinsteinLv 72 months ago
Because the price will be different on Monday. Stocks don't have fixed prices. Their prices are constantly changing.
- EvaLv 72 months ago
You can't actually purchase stock when then markets are closed. You can place the order, but it won't be filled until Monday. It's then filled at whatever price it is when the markets open.
- Anonymous2 months ago
Minutes ago it was a mutual fund. Now its a stock
Markets are open mon-fri 8:30-3:00 central.
You cannot buy until the market is open. And you won't know the price until the new price is determined a few hours after the market closes for mutual funds. You will know the stock price as soon as it fills.