Hi I am brand new to stock trading, but not business. I understand cost basis vs profit...but I went to buy a small amount of stocks today and the stock was at 1.10, but when my order came through, it was at 1.29. When I say small amount, I bought less than 10 shares. I'm just playing with it at the moment before I play with larger amounts. Is there is a reason it jumped to 1.29 for cost? The stock still stayed at 1.10, I assume its because I bought so little, but I saw another person buy like 12 shares of a different stock, and it stayed the same price. Is there a general rule on cost basis vs quantity of stocks bought? Thanks, -Nick
What kind of market order did you put in, e.g. limit buy, or market buy or ? I suspect you may have put in a market buy order, in which case you will buy at the price that someone is selling at. Possibly for your penny stock, the highest bid was 1.05 and the lowest offer was 1.29. This could show as the "price" is 1.10 (it would be something between the bid and offer). For stocks with high liquidity, the spread (= difference between bid and offer) will be small, and you will have large sizes at the bid and offer; in such stocks you can buy 10 shares and the price will not move at all. Penny stocks are notorious for low liquidity. It is possible to buy at 1.10 when the spreads are big, if you use a limit buy order type.
