Share Trading

Can I hold just one share so that I can be included in future share purchase plans?

Question: I was wondering your opinion regarding when selling shares and having the intention of selling all shares in a particular stock, to sell all but one, therefore being included in any future share purchase plans or offers etc? There are both pros and cons with the above strategy. The minimum marketable parcel in any…

If I sell all my shares but one, can I be included in any future share purchase plans or offers etc?

Question: Was wondering your opinion regarding when selling shares and having the intention of selling all shares in a particular stock, to sell all but one, therefore being included in any future share purchase plans or offers etc? Response: There are both pros and cons with the above strategy. The minimum marketable parcel in any…

How does the course of sales work?

Question: With course of sales I notice there are lots of trades for single shares sometimes a whole stream of them one after the other. What’s going on? Why bother selling one share at a time? Response: The course of sales is a chronological record of all trades which have taken place for a particular…

How do I get an order filled before the open of the market ?

Question: “I was waiting to buy  “SIP” on Friday morning and on opening at 11:00 it was already +38%! How do people get their orders filled before open to receive the gain? On Thursday I put an order in at 7:30am to buy “AEC” at 2.680 and when it opened I did not get my…

How to buy and sell shares with conditional orders

Question: Can you please demonstrate how conditional orders work, and tell us why traders use them? Response: Conditional Orders enable investors to set specific conditions to either buy or sell shares at a certain price if a share reaches that price in the market. We will look at four strategies: Falling Sell, Rising Buy, Falling…

What is the formula to determine the total % return on a fully franked dividend?

Question: What is the formula to determine the total % return on a fully franked dividend?   Response: If a dividend is 100% Franked, then for every $30.00 of tax paid by the company, a franked dividend of $70.00 can be paid. Company Profit:  $100.00 Tax Paid:            $ 30.00 Dividend Paid:     $ 70.00…

How do you tell whether a share is undervalued or overvalued?

Typically when we refer to value in the stock market we’re talking about the value of the underlying company.  This is different to terms like ‘overbought’ or ‘oversold’ which we often hear in technical analysis focusing purely on price movement.   Today we’ll be focussing on the fundamental value of a company.   PE Ratio…

Why is return on equity such an important measure for a company?

Why is return on equity such an important measure for a company? How does a good ROE help prove that the company is performing well? Response: One of the most important profitability metrics is Return on Equity, or ROE for short. ROE reveals how much profit a company earned in comparison to the total amount…

How to fill your bid at market open

Hello Matt, some time ago I asked how the End Of Day settlement process works. Thank you for that. Can you please tell me how the Pre-Market works. I see on my screen the matching bids altering up and down on the pre-open. I would like to know if my initial bid will fill at…

Why are shares quoted to 3 decimal places?

I do understand that the ASX works up to three decimal points. What I would like to know is how one Australian dollar is divided by .nn For example: Shares in a company is shown as $3.600, $3.590, $3.580. Can you please explain? Dexter Dear Dexter and readers, Shares listed on the ASX are quoted…