Short Sell triggered by Bid Price?

[joezjeans]

Hi Everyone,

I'm perplexed by this situation, and feel I got hosed... what do you think... here's what happened:

I owned 3,000 shares of JOEZ, traded on NASDAQ. The stock closed at $0.59 per share last Wednesday, 4/29. In order to protect my investment, I placed a stop-sell on it at $0.28. The next morning, upon market open at 9:30, all 3,000 shares were sold at $0.58 or $0.59 per share. The stock opened at $0.56, and the low for the day was $0.55. It fluctuated a bit that day, but never got below $0.55, and it did rise to about $0.67 at one point, before closing at $0.64.

I called to question about why my shares were sold, when the stop sell was placed at $0.28, and the low for the day was $0.55. The answer I received was that NASDAQ's stop sell price is based on the bid price, not an actual transaction. She went on to tell me that at 9:30:00, there was a bid of $0.27, which changed my stop sell into a market order. There was another bid of $0.58 placed at 9:30:01, and my shares were sold at that price two seconds later. I questioned how the stop sell could be triggered by a bid of $0.27 when no shares were traded at that price... or anywhere near that price. She just said that NASDAQ bases the stop sells on the bid prices, and the bid was $0.27 for a fraction of a second when the market opened. March 24th was the last time the price was at $0.27.


What do you think? Does this make sense??


Thanks so much!


-Bob