The phase-in list is a group of NASDAQ stocks subject to the improved quotation rules. The quotation rules specify that your bid or offer can improve the inside market. Specifically, quotes are improvable up to 1/16th of a dollar for stocks $10 and above, 1/8 for stocks less than $10.
APAC is 15 1/2 x 15 5/8.
You enter an order to buy 1,000 @ 15 5/8. Your cost for this transaction is $15,635.51:
1000 * 15 5/8 = 15,625.00
9.99 Datek Fee
.52 SEC Fee
If you wanted to sell while the quote was still 15 1/2 x 15 5/8, you would receive $15,489.99:
1000 * 15 1/2 = 15,550.00
9.99 Datek Fee
.52 SEC Fee
So the difference between the cost and receipt (your loss) is $145.52. You start out with a loss.
Suppose when you bought the stock, you could improve on the bid. The current quote in 16ths is:
15 8/16 x 15 10/16
A difference of 3/8.
Using this information, you could offer to buy APAC at 15 9/16. You could offer to sell APAC at 15 9/16. The first improves the inside bid to 15 9/16. The second improves the inside ask to 15 9/16.
Yes, you can offer to buy at 15 8/16 (15 1/2), but that would not improve the inside bid. You can offer to sell at 15 10/16 (15 5/8), but that would not improve the inside ask.
Improving the bid and ask as much as possible gives a quote of 15 9/16 x 15 9/16. Buying and selling at this price means you'd be out only commissions and fees.
Now, the fact that APAC was 59 and is now 15 has nothing whatsoever to do with being on the phase-in list.
To understand why this stock is down, notice that it had a very high PE. Then read the articles here:
biz.yahoo.com
Good luck,
Caroline |
