When does a market price change?

Okay, another question about share prices.
Say I hold 1 share of A which is traded on a public exchage. The midpoint price is 100p. I sell this one share to my friend for 50p. I
post off the share transfer form to the registrar.
Now presumably the registrar informs the exchange of the transaction. Let us assume that this is the only trade in A which has taken place in say the past year. Does the midpoint price change to reflect the most recent trade? Does it change to 50p?
Cheers,
Rody
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No, why would they, and more to the point how could they, they dont know or care what price you sold it for. They only care who owns it.
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Tumbleweed

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Tumbleweed wrote:

Ah okay, I assumed that registrars would be obliged to make this information known to the exchange.
So the registrar will only know how much has moved and between whom? Is this information then made public by them?
Does this mean that there could be all sorts of huge transactions taking place that the market will just not be aware of ?
Cheers,
Rody
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Any transactions involving holders of more than 3% of the stock must be notified to the market.
Tiddy Ogg. http://www.tiddyogg.co.uk
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It depends, see below, on the exchange regulations, which are mostly percentage based AFAIK. e.g. if someone wants to buy 20% yes, if someone wants to buy 1 share which is 0.00001%, no,and that isnt the registrar, 'he' does that after the event, it will have to be announced by the person doing the trading or proposed trade. All this is AIUI of course.

No because I divorced the theory of what happens from the practice and legality of trading on exchanges. There are rules about what percentage of shares can be traded, with whom, under what circumstances. There could be small transactions taking place that no one knows about except the registrar and even then he might not. My point was, the registrar, AFAIK, doesnt get involved in the admin of those rules (that would be the exchange they are traded on), or in pricing decisions, they just keep track of who owns the shares. Thats all they do. And even then, AIUI, a broker can hold shares on your behalf, so the registrar might have noted there are 1 million shares owned by Company X, whereas in fact there are 1 million people all owning 1 share each and Company X is the middleman dealing with all the paperwork.
Are you doing your homework very slowly, one question at a time?
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Tumbleweed

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Tumbleweed wrote:
[snip detailed answers]

Heh no, it's been a while since I've had to do any homework; well, my own homework anyway :-)
I'm usually bursting with all sorts of questions, and it just happens that I've been reading around the topic of investing at the moment and need to make some trades too, hence the questions on this topic. I posted them in seperate threads for the usual reasons (keep discussion focussed and manageable, let people ignore specific threads etc)
The govt debt one probably belongs on an econ group really, so I might try there. I was really wondering about splitting up countries in clever ways to become debt free.
I've still got lots of other finance questions (Insider trading, secondary markets, share repurchases, Lloyds, valuation...), but I'll spare the group the traffic for now and let you get back to ISAs etc :-)
Thanks for your answers!
Rody
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Generally, the prices quoted are those of the market makers, not a historical record of transactions.
The market makers themselves will, of course, be influenced by trading information.
--
John Boyle

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john boyle wrote:

So when, for example we see the price/date of the "last" trade quoted, then this is actually the last market-maker trade? So e.g. matched deals with a broker would not be reflected here?
Cheers,
Rody
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The market makers set their prices to what they think fit. There need be no trading in a stock for the price to change.
Tiddy Ogg. http://www.tiddyogg.co.uk
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Tiddy Ogg wrote:

Sure, I understand that. What I meant was that if we, for example, look at the first company traded on OFEX:
http://www.ofex.com/data.shtml?ISIN=GB0034318898
We see that the last trades are (as I write this) :
Trade Date Trade Time Price Volume Type Consideration 10/01/2006 10:07:34 1.50 100,000 O 1,500.00 03/01/2006 13:10:34 1.25 147,059 O 1,838.23 24/11/2005 11:26:20 2.25 220,000 O 4,950.00 11/11/2005 13:06:07 1.50 10 O 0.15 31/10/2005 10:40:08 1.25 24,000 O 300.00
However, from what's been posted here, far more trades may well have occurred, but these are the only ones that were reported to the exchange. And as it happens for this equity, we can see that the price is still the same as that of the last trade, two days ago.
Also, it appears that someone saw fit to report 15 pences worth of trading to the exchange last november. I would guess that this is because they did it through a broker, and the broker reports all trades to the exchange as a matter of course?
Cheers,
Rody
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Ahh! OFEX is different!

No, I was talking about mainstream FTSE stuff.

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John Boyle

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No, that is the last deal recorded on the market. Since that took place, the market makers will still display their prices.

No.
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John Boyle

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