AFF Member Stock Discussion

Happy Dude said:
May I ask a noob question regarding "limit" buy orders? Great, thanks.

If I place an order overnight offering the closing price as the limit, why doesn't the order get filled immediately upon market opening?
Click to expand...

Like others have said, for ordinary shares, the closing price one day is very rarely the opening price the next day. If the opening price is lower than your limit price, your order would likely be filled and possibly for a lower price, but if the opening price is higher than your limit, your order is not filled.
 
Happy Dude said:
Ah I didn't realise that the closing and opening prices could/would be different. Ta
Click to expand...

Generally, the only time closing and opening prices are the same are for instruments that trade 24/7, such as futures, but even they can gap up or down on open.

Note: 24/7 trading is a term that does not actually mean 24 hours per day, 7 days per week but is something close to that.
 
HappyFlyerFamily said:
At the open, there is a balancing that takes effect on the first in the morning order so that a group of buyers and sellers of the same number of shares in total buy at the opening price. The balancing would have included some buyers willing to pay higher than the open price and some seller willing to sell lower than the open price.
Click to expand...
The ASX Auction periods, is their only purpose so the algorithmic traders can manipulate opening and closing prices?

Watch any trade and notice how the orders change instantly to ensure that only a single share gets traded last.
 
MFG hit another new low of $13.22 today. If it can't find some support around the $9.50-10.00 mark, I fear there will be no telling how low it could go but likely well into the single digits.

PPM is also continuing the trend that I predicted for it with a new low today.
 
Well Pepper which is PPM went ex dividend of 9 cents. Their recent result was a beat of their prospectus forecast and they now have a very low price earnings. We liked their numbers.
We converted Core Lithium options @45 cents and might hold them for a while.
The Macquarie brokers who liked Magellan did not convince us to buy so we are not there.
There has been a flight of money to the big 4 banks as investors seek safety.
Today the futures are down 61 so it may be difficult.
We sold more than we bought over the past fortnight.
Meanwhile BIIB which is Biogen in the US is dropping a lot so their Alzheimer’s drug seems to be a flop. $468 to $193 is quite a drop. We should have shorted that one.
 
Last edited:
Just found out from CBA that the latest PEARL offering must go through a broker, and CommSec told me you must be a sophisticated investor even for reinvestment. Is there a way around it or the intention is to prevent retail investors from buying hybrids going forward?
 
glasszon said:
Just found out from CBA that the latest PEARL offering must go through a broker, and CommSec told me you must be a sophisticated investor even for reinvestment. Is there a way around it or the intention is to prevent retail investors from buying hybrids going forward?
Click to expand...
The government changed the rules and made these sorts of transaction, both reinvestment and new applications, available only to sophisticated investors. Pretty stupid ruling as there is nothing stopping you going on market and buying once the offer closes and the hybrid lists on the ASX.
 
This was offered to us by the broker aeons ago and I didn't bother as we are very conservative investors.
Now it seems necessary… more big brother oversight...
 
Kerrodt said:
The government changed the rules and made these sorts of transaction, both reinvestment and new applications, available only to sophisticated investors. Pretty stupid ruling as there is nothing stopping you going on market and buying once the offer closes and the hybrid lists on the ASX.
Click to expand...

Thanks, I am afraid this might be the case. I probably will reinvest those money into stocks instead. I just don't like the idea of paying a premium to buy on the secondary market because I am not deemed to be a sophisticated investor.

They should make the definition of sophisticated investor based on investor knowledge rather than asset/income. Surely an investor that has professional qualification would be better placed than an investor who met the asset requirement due to the valuation of their family home.
 
Bank hybrids generally rank behind bank depositors in the unlikely event of a bank failure.
Many retail investors would be unlikely to know/understand this.
Interest rates are likely to start rising generally later this year as inflation is surging.
There are many hybrid securities that are existing that a retail investor can buy on the market rather than go for a new issue.
The last issue we took was a Macquarie Bank one quite a while ago as the more recent issues were not attractive anyway. It was rushed so we received a fraction of what we applied for despite being Macquarie long term shareholders.
The rule changes are an attempt to keep to keep retail investors safe.
 
The rule changes are an attempt to keep to keep retail investors safe

IMnsHO..that is a large, smelly load of nanny state codswallop…..
 
tgh said:
The rule changes are an attempt to keep to keep retail investors safe

IMnsHO..that is a large, smelly load of nanny state codswallop…..
Click to expand...
or financial advisers in business?
 
cove said:
Bank hybrids generally rank behind bank depositors in the unlikely event of a bank failure.
Many retail investors would be unlikely to know/understand this.
Interest rates are likely to start rising generally later this year as inflation is surging.
There are many hybrid securities that are existing that a retail investor can buy on the market rather than go for a new issue.
The last issue we took was a Macquarie Bank one quite a while ago as the more recent issues were not attractive anyway. It was rushed so we received a fraction of what we applied for despite being Macquarie long term shareholders.
The rule changes are an attempt to keep to keep retail investors safe.
Click to expand...

Your last statement has little truth to it as a retail investor can go on the secondary market and buy these at their own free will, whether they are sophisticated or not. The risk to the investor hasn't changed at all.
 
Kerrodt said:
Your last statement has little truth to it as a retail investor can go on the secondary market and buy these at their own free will, whether they are sophisticated or not. The risk to the investor hasn't changed at all.
Click to expand...

It is actually true. However as a measure, while it covers that initial distribution, it doesn't exclude or cover that secondary trade risk.

Thus, it's possible that these measures would be rolled out further, but this would require much greater updates across the industry to handle the secondary risk as well. Which would obviously take more time and effort. Obviously they decided to just focus on the 'low hanging fruit' first.

Also note that the restriction is determined by the issuer, just as 'sophisticated investor' only determinations have been. So the risk assessment and target market is determined by CBA in this case as to who they consider appropriate purchasers of these.
 

Become an AFF member!

Join Australian Frequent Flyer (AFF) for free and unlock insider tips, exclusive deals, and global meetups with 65,000+ frequent flyers.

AFF members can also access our Frequent Flyer Training courses, and upgrade to Fast-track your way to expert traveller status and unlock even more exclusive discounts!

AFF forum abbreviations

Wondering about Y, J or any of the other abbreviations used on our forum?

Check out our guide to common AFF acronyms & abbreviations.

Recent Posts

Currently Active Users

Total: 266 (members: 37, guests: 229)
Back
Top