market size in nasdaq stocks

destiny

Member
84 0
hi all,
i was browsing through the ADVFN toplists to find nasdaq percentage gainers, i was watching the real time prices to see that the amount of shares bought were only minimal, i was wondering why this is so, is there a dealing limit? it seems quite odd comparing with UK stocks. i hope someone can shed some light on this. Thanks
 

raf110

Member
63 1
This is generally the case, poor liquidity. As the shre prices can be in the $100s, there often little or no size.
 

Trader333

Moderator
8,613 939
It is important to have a list of stocks that have got good historical volume and this may mean not trading stocks that happen to be in the Nasdaq 100.

I prefer to trade stocks that have over 1.2 Million shares traded per day and even better if over 1.5 Million. There are still plenty of stocks that meet this criteria and are priced between $15 and say $60 which means they are affordable to trade.


Paul
 

destiny

Member
84 0
hi,
the stocks that i see in the in the percentage gainers are under 10 pence, the size of shares bought are no more than 1000 shares at a time, in UK small caps such as Offshore telecom (OST) is traded 20 mln a day even though it is a penny share. i am confused, and some1 explain why please..
 

destiny

Member
84 0
hi
as an example, DFCT listed on NASDAQ is up 170.4% as i write, shares traded is 24,706,251. however each trade is very low in terms off shares bought. in UK this does not happen. more than mln shares are traded in just a single trade. does NASDAQ stocks have restrictions or is it the traders themselves?
 

raf110

Member
63 1
I am not aware of any restrictions, and I used to make a market for US stocks (16 months ago-but I don't think they have changed anything)
 

BBB

Experienced member
1,071 3
MAybe it's just a cultural thing: You want to raise 10 million, so you can either issue 10 million stocks at 1 each (UK) or 1 million stocks at 10 each (US).

The US model implies more volatility as there is less quantity, so it's better in attracting a speculative crowd - which inturn provides more liquidity. The UK model however is geared to investment crowds (longer term holdings) so prefer a larger float so everyone can have a piece of the pie. However, in reality the good old UK Establishment get it all wrong again. UK markets tend to remain in trading ranges a lot more thus making US markets more attractive to the trend follower (buy & hold or trader) - with no stamp duty to pay either!
 
 
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