Hello,I am about to buy my first stock. I have decided on Starbucks. I wanted to buy it yesterday when it reached a 52-week low - just below $17, but I couldn't get "instantly verified" because my bank wouldn't allow the process instantly. OK....thanks Regions, I appreciate that.Anyway, I set up my first broker account at Scottrade based on advice I got from fellow fools. This morning I am verified and ready to place my first order. I'm a little nervous, but I've been reading the fool, the Stock Advisor and a lot of other stuff – so I think I’m ready!So, here's my question: When I go to the TRADE page on Scottrade, it only gives me one option in a drop down menu that reads something like, "order good through 4PM". Wow, that stopped me. Starbucks closed out at $17.74 yesterday – a 90-something cent gain. (Thanks again, Regions.) What I am afraid of is that my order won't go through until 2:30 when it miraculously jumps to $32.49 or thereabouts causing a little tear to appear in the corner of my eye. What does all this mean? If I place my order this morning, what's going to happen? When will my stock be purchased? And, why does Scottrade states that the stock is "usually purchased at the "ask price", which is setting at about 18 cents higher than the closing price?In advance, thanks for your help! I’m pretty nervous this morning. I think I need to back off my coffee and work in a good set of jumping jacks! Wooo!Kirk
Great Question Kirk! I too, wonder about this and was hoping to see some response to your question. I am using Scottrade as well. When you hit the "buy" button, you're never sure at what price you will buy. It's always been higher than what I have anticipated.I'm just starting in this market business. Any help is appreciated!!!!Joe
I do not know about the broker you are using but it sounds like you are buying at market price, the best price available at the time your order is reached in the line-up and processed. When doing online purchases there should be an option called limit order or something like that. By this option you can set the maximum price you will pay for your order. The downside is that if the price exceeds our limit your order will not be filled.
Can you please explain the meeting of "down 777 points" as was the case on September 29th?Can you please explain what is meant by "trading volume was down below 10,000"?Sorry for the elementary questions but that's the definition of this chat group "Jargon and Definitions" for the beginning investor.Thank you,SS
Hi SS, Sorry for the elementary questions but that's the definition of this chat group "Jargon and Definitions" Relax, no one was born a finanical wizard. Ask away! Can you please explain the meeting of "down 777 points" as was the case on September 29th? Below is a link to a Dow primer. The Dow usually refers to the Dow Jones Industrial Average. There are other Dow averages as well...transportation for one,but usually "the dow" means the DJIA. It's just a benchmark of industry in the U.S. It let's you know how industry is doing as a whole...that's all. We need some barometer of how business is doing over all. You don't need to know how to calculate it. When you hear that it dropped 777 points, that means the average dropped 777 points from where it was the previous day. Some times it goes up, sometimes down. http://www.investopedia.com/articles/02/082702.aspCan you please explain what is meant by "trading volume was down below 10,000"? Now this may be a bit tricky. Are we sure we are talking about volume being down below 10,000...or are we talking about the Dow being below 10,000? I say this because the Dow recently dropped below 10,000 for the first time in years. If we are talking about "volume" that just means the number of shares traded. Most stocks volume for a day is in millions of shares traded, not 10,000, unless it's a very small company.J.P.
Dear J.P.Awesome of you to be so gentle with me for the "elementary" questions.With regard to volume' yes, I wanted to know what the media meant when they said that trading dipped below 10,000 because it had not dipped below that benchmark for years. What does that mean?With regard to the first question regarding the infamous 777 point drop. If I understand you correctly, the average DJIN dropped 777 points and that's the benchmark we use as our lipness test for how the rest of the market faired...DJIA is just an indicator though since the DJIA represents a "slice of the pie" which obviously represents the whole if one has a diversified portfolio? Do I have this right?Hey, J.P. thank you again for answsering my question in a respectful way and without condescending comments or negative undertones. You are AWESOME.Thx,S.S.
SS,Awesome of you to be so gentle with me for the "elementary" questions. No problem!With regard to volume' yes, I wanted to know what the media meant when they said that trading dipped below 10,000 because it had not dipped below that benchmark for years. What does that mean? They meant the DJIA dipped below 10,000. As of today, the DJIA is at 8852...well below 10,000. I visited the NYSE (New York Stock Exchange) the day it broke 10,000 for the first time. They stopped for a moment, applauded and went back to trading. This was before 911, and I don't know if they have tours of the exchange anymore because of security. "Volume" is different than the 10,000 we're talking about. Take a look at this link: http://finance.yahoo.com/q/hp?s=%5EDJI The "volume" in this case for the dow was 6,581,780,000. If I am not mistaken, that number represents how many times the 30 stocks that make up the Dow, were traded that day. The DJIA is ONLY 30 stocks chosen by the Editors of the Wall Street Journal. Here are those 30 stocks:http://finance.yahoo.com/q/cp?s=%5EDJI As you can see, these are HUGE companies. There may be only 30, but the companies are gigantic. DJIA is just an indicator though since the DJIA represents a "slice of the pie" which obviously represents the whole if one has a diversified portfolio? Do I have this right? Absotively! It's just one bench mark...probably the oldest. Way back when Charley Dow came up with this idea, there were only a handful of stocks (8?) in the average. At that time, most of them where railroad stocks because that was a major industry back then. If you look at the Dow componants in the link above, it represents a lot of industry. The S&P 500 is another bench mark. It represents...you guessed it, 500 compnaies the Standard and Poor's believes represent the over all market. The Russell 2000 is and index of smaller companies. There are quite a few indexes but the most popular the the Dow and the S&P 500. Hey, J.P. thank you again for answsering my question in a respectful way and without condescending comments or negative undertones. You are AWESOME. I hope you're not finding that here at the Fool! The vast majority of posters are cool. "Ask a Foolish Question" is another good board to ask questions. There's a whole army of people answering questions on that board, if someone doesn't know the answer, usually someone else will provide it. Take care, J.P.
Dear J.P.Thanks again for your wonderful advice.I think I have it now. Falling below 10,000 means the average price of all 30 ocmpanies. I would imagine that it might be difficult to "split" your stock if you're on one of the 30 DJIA companies; it would erroneously skew the average downward when in fact the stock were increasing in price. It is a guage to be used as a point of reference only and the "point of reference" shouldn't move but rather the rest of us pivot around it.I wondered why they removed General Mills and inserted another large company...not even in the same sector (I think it was an energy company) when the perverbial "s___ hit the fan" around Septermber 29th. It seems like that was simply ofered a very thick coat of cover-up make-up to a very big pimple on the nose of the DJIA. I was not too happy to see them "making substitutions" as a way to shore-up confidence. Did you catch when they did that? Okay, so 10K just means $10K in dollars.Thanks for all of the explanations and references. You have been very helpful. No, I have not been getting any negative responses at all and in fact, the post you answered was my very first post on a chat board ANYWHERE. I just didn't know what to expect from my VERY elementary and seemingly "foolish" question. I guess everyone assumes that everybody knows this stuff and it should be common knowledge but when I googled and yahooed the question, I didn't get anywhere.....TOO SIMPLE AND TOO STUPID to be answered anywhere on the net. I got so frustrated after a couple of days of searching that I decided to sign up on this chat board.Thasnks again for your very helpful and supportive replies.Blessings,KH
No Problem KH, Here's a link to the "Ask a Foolish Question" board that I mentioned earlier:http://boards.fool.com/messages.asp?mid=27107040&bid=100... They cover everything there. Have a good one!J.P.
Thanks so much J.P.S.S. aka KH
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