Liquidity and Datafeed?

Question

Hello folks. Just wanted a little clarification on pre-after market liquidity. Even during normal trading hours if the selllers were many and the the stock tumbled, would we have enough buyers for say an institutional holder wanting to sell atleast quarter of the common stocks or there is always a sucker/opportunist on the other side seeing this as a cheap bargain.

Today around 4am eastern it said LEH was up 4.34% in pre market, what does that mean? Is this the asking price or a bidding price. Who determines the hike in price of LEH.

Is data feed provided by Quotetracker updated with latest news headlines, earning reports etc or does one usually have to look for these else where. I'd assume there is a lagging factor here and it couldn't be possible for the folks at quotetracker to know all latest news, m/a etc.

Your feedbacks appreciated

Answer 1

If you're just seeing one price, it's probably the last trade.  If you want to see where the market is now, you need someplace that is showing both bid and asked.

The folks at quotetracker don't know anything.  The site is just a computer program that aggregates stories from multiple news feeds.  The list of sources is on their web site.

A price hike is determined by bidders willing to pay more and sellers refusing to sell for less.

One of the things working against institutions is their size.  It takes a while to get rid of a large position if they don't want to take fire sale prices.  Don't forget, the news that the institution saw that made them want to sell, was also seen by other institutions with large positions to unload and was seen by potential buyers and would made them reluctant to buy.