It's a way of purchasing a stock. Whatever.com is volatile. On any given day lately, it trades between $18 and $20. You have no idea if this thing is going to go to $40 or $4, but you want to roll the dice and own it. You want it now. Right now.
So you call your broker and you instruct her to purchase 1,000 shares of whatever.com at the market. The broker has a screen in front of her, with a live feed of market prices. She tells you that the market price is $18.38 at this moment, and that's the price at which you've just bought whatever.com. You bought it at a price that was at the market.
Related or Semi-related Video
Finance: What is Good Delivery?11 Views
Finance allah shmoop What is good delivery All right Well
here's bad delivery You have been there if a security
that's traded on an exchange meets the requirements toe permit
it to be transferred from seller to buyer While then
the transfer is said to be of good delivery When
it happens legal transfer happens with no hiccups and well
life is good But on the other hand if a
share of stock is say restricted as in a one
forty four a type situation so that it cannot be
transferred Well then good delivery of this share cannot be
realized Recall that a one forty four a restriction is
a common provisions that insiders like early investors and management
and founders of a recently i po'd company fall under
that is for a six months and change after the
company was first taken public they are restricted from being
able to transact in there stock They couldn't sell it
And nobody could take good delivery of those shares Well
why would there be a provisioned for good delivery in
the first place Well you can imagine that before the
various regulatory bodies took hold in america there was all
kinds of room for fast talking city slickers to sell
no value Floor tiles of blue sky too ignorant farmers
who really didn't know what they were buying or that
various legal hoops had to be jumped through first So
good delivery actually became a hurdle that brokerages and their
clients had to pay attention to And well let's hope
they get it better Then this ups guy We're still 00:01:29.509 --> [endTime] angry about our glasses Yeah
Up Next
What are Buy Stop and Sell Stop Orders? An investor makes a buy stop order; the buy stop tells the broker to purchase an asset when its price becom...
What is Good ‘Til Cancelled (GTC)? GTC orders are trade orders that may be filled at any time unless the investor cancels it. Good til cancelled...
What is a limit order, and how can we be sure we never have one of those in place when we go to a doughnut shop?
What does “Away from the Market” mean? Away from the market just means that a stock is moving away from its benchmark. This happens when the bu...