« previous next »
Pages: [1]

Author Topic: New listing  (Read 9958 times)

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
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?
Logged
I started here with nothing and still have most of it left.

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
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.
Logged
I started here with nothing and still have most of it left.

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2551
  • Karma: +47/-2
    • View Profile
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?
Logged

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
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.
Logged
I started here with nothing and still have most of it left.

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2551
  • Karma: +47/-2
    • View Profile
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.
Logged

Orca

  • Hero Member
  • *****
  • Posts: 2280
  • Karma: +54/-3
    • View Profile
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.
Logged
I started here with nothing and still have most of it left.
Pages: [1]
« previous next »