Just one question about shares

[Amida]

I was wondering when you've bought a bunch of shares on the stock exchange and you want to sell them who buys those shares?

Does the company buy them back or other people.

 

[Ou grote]

I was wondering when you've bought a bunch of shares on the stock exchange and you want to sell them who buys those shares?

Does the company buy them back or other people.

If the company is doing a share buyback they may, but usually its other people.

Here's a guide on how it works.
5 min of reading.
http://www.jse.co.za/beginners_guide.jsp

 

[Amida]

If the company is doing a share buyback they may, but usually its other people.

Here's a guide on how it works.
5 min of reading.
http://www.jse.co.za/beginners_guide.jsp

Thanks read through it. So if you have shares you want to sell and there's no one that wants to buy then your stuck?

 

[Bondizzo]

Thanks read through it. So if you have shares you want to sell and there's no one that wants to buy then your stuck?

Kinda, just sell them at a lower price than the current share price , leave a little bit of meat on the bone for the next person.

 

[Ou grote]

Thanks read through it. So if you have shares you want to sell and there's no one that wants to buy then your stuck?

Pretty much, unless you lower your asking price.

There are some shares that just never trade.
Could be various reasons for that though (like because they're dogs).

The 166 shares that are in the All Share Index, rarely have that problem.

 

[Amida]

O so you make up the price you want to sell for and if it's a good price someone will buy.

 

[mjwitter]

You look at what it is currently trading at, what other people are willing to buy at(bid price) and others willing to sell(ask price). Then decide what you want to sell at. If it is the same as the bid price then your shares will be sold to those willing to buy at that price. If not, your shares will sit there at your price until someone buys them or the offer expires(usually at the end of the day, depending on your broker).

 

[davemc]

In other words, to get your shares to sell when nobody wants them or when you are in a hurry, you have to drop your price below the asking price so that yours sell.

This basically means that the people closest to the action get full advantage, being able to see exactly what is going on with the prices right at that moment.

But, you don't have anything like that kind of visibility, and, those that are on the floor in the action will always get a better deal than you can.

It's a corrupt system, simply because of the way that it is physically deployed.

Ask yourself: Why there is a 15 minute delay on all pricing feeds unless you have enough money to pay to get a direct feed?

 

[milomak]

In other words, to get your shares to sell when nobody wants them or when you are in a hurry, you have to drop your price below the asking price so that yours sell.

This basically means that the people closest to the action get full advantage, being able to see exactly what is going on with the prices right at that moment.

But, you don't have anything like that kind of visibility, and, those that are on the floor in the action will always get a better deal than you can.

It's a corrupt system, simply because of the way that it is physically deployed.

Ask yourself: Why there is a 15 minute delay on all pricing feeds unless you have enough money to pay to get a direct feed?

if your are looking to "job" the stock market then you should consider getting live prices.

The assumption is that if you are a value investor then you will be investing with a certain price target in mind. you can then place a stop loss or order when the shares have reached the price to be your exit point. this way the 15 minutes becomes largely irrelevant

 

[Ou grote]

if your are looking to "job" the stock market then you should consider getting live prices.

The assumption is that if you are a value investor then you will be investing with a certain price target in mind. you can then place a stop loss or order when the shares have reached the price to be your exit point. this way the 15 minutes becomes largely irrelevant

And to add to that, when portfolio managers buy shares, they usually get them in batches over a period of time at different prices.

 

[LottaFun]

You came to a very good conclusion!!
All the books and advisors and other "hoenders" do not tell you about all these small things. Between the fees, levy's, dropping your price to sell, capital gains tax and all the other stuff, you have to have very good growth rate on your shares to make a buck.

For ex. in the past you got your share certificates on paper and you just locked that away. Now you have to pay out a monthly fee for other people to keep it. That means that you need even better growth just to recover those fees.

THE BOTTOM LINE - THERE ARE TOO MANY FINGERS IN THE PIE!!!

 

[mjwitter]

Er, it costs a few cents for an instant price quote on online trading platforms, which gives you the exact bids and offers right at that moment...

You can get a trading account for around R50 a month, so if you are making so little money investing that it is not worth paying R600 a year, then maybe just leave the money in the bank.