why does my online broker buy me stocks at a higher value than the stock is listed at?
Question : why does my online broker buy me stocks at a higher value than the stock is listed at?
I buy stocks at online brokers (sharebuilder and merril lynch) and notice that the buying price is always a few cents higher than any intra-day price. What is the reason for this? Is this just how the market works or is this some big stealing operation where money is skimmed off millions of people?
buy stocks online
Best answer:
Answer by William
Why aren’t you using limit orders?
This entry was posted by admin on October 23, 2010 at 7:39 pm, and is filed under Investing. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.
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#2 written by A nobody 1 year ago
When buying stock they are bought at the offering price and while selling stocks they are sold at the bid price.
The actual purchase price is not related to the intra-day price but it is the current offering price.Money is not part of “some big stealing operation” it’s you not understanding how the market works.
Here are some website that can provide instructions and help with procedures and terminology
Investopedia – http://www.investopedia.com/
http://www.investorshub.com/
http://www.1source4stocks.com/
http://www.tradingstocksguide.com/tradin…Before you enter into any transaction, you should know what you are doing, why you are doing it and how to do it. Before you invest in any security, the first investment you should make is in yourself, and the best investment you can make is by educating yourself
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You need to look at the ASK and BID prices when you trade. Don’t look at the listed price. You should be using limit orders to buy. That way you have control over what price you pay for a stock. Market orders are fine if you want to get into a stock at any price within a range.