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Section III : Trading Thin Issues
Situation: You are responsible, either as an agency broker or as a buyside trader, to execute a buy order, monster block of 2,500 shares, in APU, Amerigas Partners. The date is January 14th, 2010. What can you expect to happen should you send 2,500 shares to buy at the market pre-open? It closed at $40.77 on January 13th, and there is no news on the stock.
(A) You can expect a fill within $0.15 of the $40.77 close. The specialist at the post will add liquidity and maintain a fair and orderly market, and fill you
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Riddle: Can a stock have both a 52 week high and 52 week low on the same day? Answer: Yes, check out Anadarko (APC) today 1 day agoBut, but they banned stub quotes. The SEC said so. $APC 1 day agoError: Twitter did not respond. Please wait a few minutes and refresh this page.
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January 14th, 2010 at 1:10 pm
For the record… My client and I were looking at this stock together, as it is one stock they own. Part of what we do at our firm involves information and intelligence for our clients stocks, whether we are trading for them or not. Neither of us were party to the “blessing” I reference above.
Sal
January 14th, 2010 at 5:38 pm
Hey guys. I’m going with “A.” The buyer put 2500 shares into Nasdaq’s opening auction, which is kind of a dumb thing to do in a thin, NYSE listed name. NYSE opened the stock a few seconds later at 40.94. Admittedly that’s outside your 15c limit, and the print was 400 shares. But the buyer in this case — whether person or “smart” algo — could have obviously done better by going to the primary if they needed to trade on open.
(For the record, while I don’t agree with everything you say, I respect your contributions to an interesting debate.)
January 14th, 2010 at 5:50 pm
Seems like a trading error to me, not a case of manipulation.
It should actually be subject to a break or renegotiation imo.