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Author Topic: New listing  (Read 10118 times)

Orca

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New listing
« on: April 01, 2015, 09:39:09 am »
Been watching Novus since listing yesterday and got me thinking. How is trading initiated if there are no sellers yet.
Does the company sell x amount of shares at a fixed price and then let it run?
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Orca

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Re: New listing
« Reply #1 on: April 01, 2015, 02:11:18 pm »
Nobody knows the answer so my next question. When does SATRIX adjust prices? After hours I presume.
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Patrick

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Re: New listing
« Reply #2 on: April 01, 2015, 03:50:54 pm »
What do you mean adjust prices Orca? They go up and own all day, just like regular shares?
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Orca

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Re: New listing
« Reply #3 on: April 01, 2015, 04:21:39 pm »
Quote from: Patrick on April 01, 2015, 03:50:54 pm
What do you mean adjust prices Orca? They go up and own all day, just like regular shares?

They track the NAV of the underlying stocks and not supply and demand of the index itself. If the ETF gets traded up while the NAV of the underlying stocks goes down then surely this must be corrected at some stage by SATRIX management.
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Patrick

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Re: New listing
« Reply #4 on: April 01, 2015, 05:15:23 pm »
It's impossible for the price to fluctuate higher or lower than the underlying NAV. The ETF provider has to provide constant buy and sell amounts for a small spread around the NAV, so for example in the case of the INDI, satrix has a standing offer of 25000 on offer to purchase for around 6c more than NAV, as well as a standing offer of 25000 to sell at 6c less than NAV. And then when you buy a portion of those, say 5000 for example, it'll only be a few minutes that you see the shares for sale sitting at 20000 before they top it up again to 25000.
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Orca

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Re: New listing
« Reply #5 on: April 01, 2015, 06:27:20 pm »
Ah. There we go. Just getting prepared for my move over to ETF's. Thanx P.
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