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Managed Funds Videos 236 videos

Finance: What is Efficient Markets Theory?
141 Views

What is the Efficient Markets Theory? The Efficient Markets Theory says that stocks trade at their fair value all of the time, assuming all informa...

Finance: What is a Fund of Funds?
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What is a Fund of Funds? A fund of funds is a mutual fund strategy that invests in other funds rather than investing in stocks or bonds. The underl...

Finance: What is Collateralized Mortgage Obligation (CMO)?
65 Views

What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

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Finance: What Does "Away from the Market" Mean? 3 Views


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Description:

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 buy or sell price does not match the benchmark; it can be caused by things like an offering of new shares in which the offer price is higher than the price that the share is actually trading at.

Language:
English Language

Transcript

00:00

finance a la shmoop what does away from the market mean? limit orders that's what

00:08

this one's about you want to buy a hundred shares of amazork the finest [Person on computer looking at amazork]

00:12

seller of werewolf catching nets on the web but you don't want to pay more than

00:17

a grand a share for them and those shares are volatile, on days when there's

00:21

a full moon the stock shoots to 1,200 on days when the moon barely shows up the

00:26

stock often craters to right around a thousand so you put in your limit order

00:31

which is away from the market... Amazork is trading at $1,187 a share

00:38

this moment thanks to a half moon and you think it'll be two thousand dollars [Line increasing on graph of Amazork shark price]

00:41

a share in five years if what all those crazy astronomers are saying actually

00:46

holds water well but you want to be able to buy it at the right price you'll feel

00:51

like an idiot if you just pay 1,187 and then three months from now it's at 998

00:56

and you overpaid by 20-ish percent so you put in a limit order that is away [Man discussing limit orders]

01:02

from the market and note that away from the market can also work on a sell order

01:07

that's higher than market and you think about that for when the stock gets to

01:11

2000 so you wait and you wait preferably indoors and you know away from any open [Woman sitting by window and werewolf appears]

01:17

windows

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