For reasons that seemed good at the time, I bot 3000 shares of a stock that trades about 3000 shares a day. Now I can't get rid of them. It's a NYSE stock . . . so how do I get rid of the shares? Put a low limit on the shares below the bid on SMART and hope it gets filled? Route it only through NYSE? Sell a few shares at a time over the day? It's not like I'm trying to sell a ton of shares, it's just that the stock hardly trades.
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how to get rid of shares in a low volume stock
- Thread starter billyjoerob
- Start date
Quote from billyjoerob:
For reasons that seemed good at the time, I bot 3000 shares of a stock that trades about 3000 shares a day. Now I can't get rid of them. It's a NYSE stock . . . so how do I get rid of the shares? Put a low limit on the shares below the bid on SMART and hope it gets filled? Route it only through NYSE? Sell a few shares at a time over the day? It's not like I'm trying to sell a ton of shares, it's just that the stock hardly trades.
few different methods/algos firms use to get out of an illiquid position.
they include.
vwap
twap
participate 10 or 20%
and yes it could take days to get out completely
or you could get out faster by just going market with 500 or 1k shares a day or whatever.. some stocks actually don't get get hit as much as you would think. depends really.
no real great solution.
Idt-c. I got out . . . .bailed out by an appearance by the CEO on CNBC. Life doesn't usually treat you that well. Stock has already traded over 66,000 today . . . so more than 20x usual volume.
The stock was trading for more than $2 less than the identical stock IDT . . . I was waiting for the differential to narrow.
The stock was trading for more than $2 less than the identical stock IDT . . . I was waiting for the differential to narrow.