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Selling question...is it hard to sell if the volume of transactions are very low?
I owned a foreign stock where there was no volume for a couple of months at at time. I tried to sell it and ... nothing. It took probably 30 min but eventually was able to get a market order for it to go through.
ATRI looks on the illiquid side with decent sized spread between bid and ask, but not the worst I've ever seen.
Yes, stocks with low volume can be be hard to sell. There are traders that prey on people needing to sell quickly, putting in low bids on the stock until someone needs to sell at any cost. I have had this problem myself.
Reply to @bnath001: Have many shares of ATRI are you trying to sell ? You should put in a limit order price and not put in a market order. Regards, Ted
Reply to @bnath001: I definitely discuss individual names at times, but if they are the subject of a discussion, I would put them as "off-topic" (you can use the edit function to switch this from a fund discussion to "off-topic."
As for the original question, I am definitely not against holding illiquid names, but they have to be something I'm strongly interested in as there is some risk to illiquid/very illiquid names. Is the original stock discussed something that is a short-term trade or long-term holding?
Please use the Edit function on the first post of yours and switch the classification (category) of the post from "Fund Discussions" to "Off Topic" and save again.
The first question to ask is – WHY is there such low volume? The usual – and most often correct - answer is that nobody wants this stock, not even the little traders.
The next question – how much money am I willing to lose on the gamble? The correct answer should be – ALL of it.
Reply to @AKAFlack: Small company, little float, no attention? I dunno, if that's the case then it could do very well if it gets more attention. A small, not particularly liquid stock does present its own risks, though, as you note.
Scott, This is pure speculation. Generally, institutions cannot buy stocks priced under $10... that includes MFs. When and if the price exceeds $10, it will become clear (volume-wise) if the institutions are truly interested in the stock.
Reply to @AKAFlack: The stock in question is $260 and institutional ownership is around 50%. I agree with you that there is particular risks in terms of small/low float companies, especially pink sheet-style companies. However, this appears to just genuinely be a small float company on the Nasdaq. I'm not familiar with it, but it does not appear to be a pink sheet-style situation.
Comments
ATRI looks on the illiquid side with decent sized spread between bid and ask, but not the worst I've ever seen.
Regards,
Ted
I don't even own it. But I was thinking, if I had it, how would I be selling it.
thanks
As for the original question, I am definitely not against holding illiquid names, but they have to be something I'm strongly interested in as there is some risk to illiquid/very illiquid names. Is the original stock discussed something that is a short-term trade or long-term holding?
I am 43 years old.
Please use the Edit function on the first post of yours and switch the classification (category) of the post from "Fund Discussions" to "Off Topic" and save again.
The first question to ask is – WHY is there such low volume?
The usual – and most often correct - answer is that nobody
wants this stock, not even the little traders.
The next question – how much money am I willing
to lose on the gamble?
The correct answer should be – ALL of it.
Now, do you like the odds?
This is pure speculation.
Generally, institutions cannot buy stocks priced under $10... that includes MFs.
When and if the price exceeds $10, it will become clear (volume-wise)
if the institutions are truly interested in the stock.