Need Help Understanding Stock Price Please

H

Handsome

Today I was watching a quote box during trading hours at my options xpress account for a stock that I own which is NWS.

It was around 1:20pm and the bid was like 21.90 and the ask was like 21.91. It was like this for a few minutes and then all of a sudden I saw a price of $21.83 and it was in red and it was for 50,000 shares...right after that it went right back to 21.90 and then 21.91.

So I am confused as to how did that 50k come across at such a lower price?
What happened?

Thanks
Handsome
 
Its traded on the NYSE so I am assuming it was a block trade done with a floor broker. I dont really know the specifics because I have never been on the floor and not familiar with the operations or how those guys do business.

You have a specialist typing away madly and these guys running around with palm pilots writing on a screen. Someone made a deal.
 
Quote from eagle488:

Its traded on the NYSE so I am assuming it was a block trade done with a floor broker. I dont really know the specifics because I have never been on the floor and not familiar with the operations or how those guys do business.

You have a specialist typing away madly and these guys running around with palm pilots writing on a screen. Someone made a deal.
More...

Thanks Eagle. Sure was one heck of a deal that the price was so much lower than what I was watching.
Thanks and goodnight.
 
Quote from Handsome:

I am a new to buying stocks but to answer you, yes.
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no offense, but block trades and insitutional order flow are a way of life in stocks. to keep form getting you ass kicked, you need to understand the basics of how exchnages and order flow works.
You are going to have a hard time making money if you dont understand all the ways it can be taken form you.

My guess is it was a clouple of different things

1. some dumbass putting in a 50k market sell order and getting creamed.

2. pre arranged inst buy trade...maybe off the books.

this is a big reason why poeple need to have a "liquidity provision" in your trading plan. If you trade any size at all....you need to have sufficent liquidity as not to move the market or not get a lousy execution.

if oyu have an options Xpress account...and you are trading options...this is 10x more important becuse of the spread and the specialist system.

for instance...put in a market buy order on a call with a .10 spread...you will get executed about .20 above the market...taking a HUGE percentage haircut right off the top.
 
Thanks DAC

Your advice and suggestions are helpful to me in my learning process..I am no trader but am interested in learning..For now I just bought 1 stock but not to trade but to save. But I learn things here everyday..(well almost everyday)

Thanks a lot.
 
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