Investment bank Sales/Trading Question?

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  • Investment bank Sales/Trading Question?


Answer #1 | 20/12 2013 02:01
the broker sends the order directly to the stockmarket. The only check the issuer of the brokerage account may do is to check if the buyer of shares has enough money on the account, there is no need to do this when it is a selling order only when there is a loan on the actual possessions of shares. thus the 100 shares for a sell is confimed at the brokerage account and send to the stockmarket, when there is no trade the shares are not sold the party who provides the brokerage account has no influence on the orders only the stockmarket
Answer #2 | 23/12 2013 08:45
For a liquid stock, there is no time when you cannot sell 100 shares. The question is "what price?" Or are you asking about some illiquid penny stock that is already trading at a penny? Or are you asking about a limit order? A market order will just execute, but you don't always know at what price in an illiquid market, like at the open or after a news event, or during a market crash. Look into the Flash Crash in 2011 when the Dow declined 1,000 pts in one afternoon. There wasn't any complaints about their stocks being able to sell. The complaints were about the price they were sold at. The job of the Market Maker is to "make" a market, and he will often buy the stock himself.

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