Rookie questions...please help to understand

[abc]

For example...lets say the live feed shows a bid at .4 and ask at .45, but out of nowhere a buy/sale goes through of like 250,000 shares @.30. However, the bid and ask stays at the same price as this 250,000 shares goes through. If I try to buy at .30, there is no way I can get any shares.


What is going on? Was the 250,000 shares a sell or a buy? Is that a corporate buy/sell? Usually when or why does this occurs? Please help me understand this. Thanks

[Dinamo]

Most of the time is a transaction that happened when either bid/ask were at the mentioned amount. It is quite difficult if not impossible IMO to tell whether it was a sell or a buy and I don't think it has anything to do with corporate buying.

Hope this answers it for you.

[abc]

Here is my thing....who the heck would buy that much shares on a OBB stock? I can only think of corporate. Lets do the math 250000*.30 thats $75k.

Im thinking if its a buy then it must mean something is about to run up right? Or the company is doing something really well and they just want to accumulate as much shares before releasing the news?

[Doc Holliday]

it could be the start of dilution also so be wary. usually you see higher volume with dilution but it might just be the start of it. MMs also play a lot of games swapping paper back and forth.

[abc]

This is the weird part...the volume wasn't even that high. Id say it was about 400,000. The above number was just a sample, but the actual stock I was looking at is RKLC.

Does anyone know whats going on with this company? Ive read up a lot of their articles, and all Ive been seeing are good stuff. Can someone pinpoint to me the bad stuff? Thanks so much. This will help me learn a lot here.

[Skydaemon]

You missed a zero there bud. rklc trades at 4 cents roughly.

.03 * 250,000 = $7,500 = pocket change.

Probably just someone with an all or none order getting screwed on price on a thinly traded stock, and it was most likely a sell if it was well below the bid (as that's what would happen to an all or none sell that had to dip to meet the volume).

[CatFish]

Originally Posted by abc

For example...lets say the live feed shows a bid at .4 and ask at .45, but out of nowhere a buy/sale goes through of like 250,000 shares @.30. However, the bid and ask stays at the same price as this 250,000 shares goes through. If I try to buy at .30, there is no way I can get any shares.


What is going on? Was the 250,000 shares a sell or a buy? Is that a corporate buy/sell? Usually when or why does this occurs? Please help me understand this. Thanks

when ever you have a trade outside the bid and ask it is one of 2 things. an mm cleaning his books or a trade that was held and not put threw when it happened which happens a lot

[TNTrader]

I show only one trade of 250k shares today.


It executed at .033, bid was .034 ask was .0345..... Normal trade route through the OTCBB..

This particular trade was probably just an either/or sell order programmed for block volume to trigger the lower high volume tick.

Good Luck