All Or None
Comments OffNormally, when you purchase a substantial amount of a company’s common stock, your broker will fill your order over the course of several hours, days, or even weeks, as opportunity arises. This will prevent you from “moving the market” – or drastically increasing (decreasing) the price of the stock by flooding the market with a [...]
Stop Order and Stop Limit Orders
Comments OffIn common parlance, stop and stop limit orders are known as “stop loss” orders because speculators use them to lock in profits from profitable trades. A stop order automatically converts into a market order when a predetermined price is reached (this is referred to as the “stop price”). At that point, the ordinary rules of [...]
Limit Orders
Comments OffA limit order allows you to limit either the maximum price you pay or the minimum price you are willing to accept when buying or selling a stock. The primary difference between a market order and a limit order is that your broker cannot guarantee that the latter will be executed. Imagine you want to [...]
Types of Market Orders
Comments OffThe simplest and most common type, market orders simply tell your broker that you are willing to take whatever price is presented to you when your order is executed. These orders are often subject to the lowest commission since they are the easiest to execute. Imagine you want to buy 100 shares of Apple Computer, [...]
The Five Components of an Investors Required Rate of Return
Comments Offfinancial theory, the rate of return at which an investment trades is the sum of five different components. They are: 1. The Real Risk-Free Interest Rate This is the rate to which all other investments are compared. It is the rate of return an investor can earn without any risk in a world with no [...]
