Sorry, I don't know what "weighs the buys and sells against each other after every transaction" means. There are buyers who make bids and sellers who make offers; that's all there are. When the best bid and the best offer meet, a transaction takes place. My question about the TSE still stands: What happens when a member doesn't find a matching order on the electronic system that is reasonably near recent transaction prices? What, exactly, in detail, happens? Example: suppose the last trade in Example, Inc., was at $100. Jane Doe places a market order with her broker, a member of the TSE, to buy 100 shares. The best offer in the computer's order book at the moment is at $125. Does Jane pay $125? If she buys at a lower price, who is the seller?
Regardless of what anyone thinks "should" be the case, the only way to sell a security at the same price at which one just bought it a moment before is if there is a buyer willing to pay that same price. This may happen, but it is not usually the case -- in any market, anywhere in the world, as what I am talking about is the nature of markets, not a particular one. |
