Common Stock Price Quotations

Price quotations of common stocks are to be found in the current newspapers, many of which feature them as part of their financial section. Should a given stock not appear on the published list, then a stockbroker's office will gladly furnish the quotation, often obtaining it by wire from New York if necessary. The price will be based upon what buyers are willing to pay for the stock and what sellers are asking for the stock.

Suppose that Fred finds out from his broker that the stock of Supergadgette Manufacturing is quoted "10-104"; this means that buyers are willing to pay $10 and sellers are expecting to get $10.25 per share for the stock in what are called "round lots"; in the case under discussion, a round lot will very likely be 100 shares.

It is easily seen that if any transaction is to take place the price may be anywhere between the figures quoted above; for example, a round lot may have been sold for exactly $10 per share. In Fred's case, he may have to take slightly less ($9.875), because he is not selling a full round lot; this means that someone must combine his shares with other shares to make up a round lot for later sale.