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?
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 ?
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?
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!
Sure, I understand that. What I meant was that if we, for example, look
at the first company traded on OFEX:
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?
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