Question:

More difficult to sell small amount of shares?

by  |  earlier

0 LIKES UnLike

Let's say I only purchase 25 shares of stock XYZ (large capper, average volume). Is it more difficult to turn around and re-sell those shares when other traders are usually wanting to buy shares by the 1,000's? Will I take a hit on my sale price, or will my broker simply lump my shares with another seller to meet the order of the buyer? Does my small amount of shares take a hit due to this?

 Tags:

   Report

5 ANSWERS


  1. Nah, they all just get lumped together


  2. if one can only single stock can sell it low price quating

  3. You're not penalized at all for having an odd lot.

    You can sell it very easily.  

    Even though the unit of trading is for 100 shares, or there's large numbers in the quote, the order will go.

    If the stock is listed, it will be executed by a machine, if it's OTC, a market maker doesn't care, they'll just give your order an execution to get it out of the way.

  4. It won't be anymore difficult to sell than a larger block.  When you submit an order, your shares will go into the queue with all other orders.  The size doesn't matter.  There is a good chance your shares will be grouped together shares from another seller.  But that will not make any difference to you.  

    When your shares reach the head of the queue, you will get the current price.  Selling a small quantity won't affect the price you get.  Selling a larger quantity is actually more likely to have an effect.  Because the bid price may change before all of them sell.

  5. Good answers here.  You actually hit on part of the answer yourself . . . volume.  Generally, try looking at stocks that trade at least 500,000 shares.  1 million is better.

    You can limit your risk by placing a "limit", "all or none", or "fill or kill" order if your concerned.

    And the market makers don't care if they fill an order with one seller or a dozen.  Its all the same at the end.

Question Stats

Latest activity: earlier.
This question has 5 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.