ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos

See All

Finance: What Does "Away from the Market" Mean? 3 Views

Share It!

Description:

What does “Away from the Market” mean? Away from the market just means that a stock is moving away from its benchmark. This happens when the buy or sell price does not match the benchmark; it can be caused by things like an offering of new shares in which the offer price is higher than the price that the share is actually trading at.

Language:

English Language

Subjects:

Transcript

00:00
finance a la shmoop what does away from the market mean? limit orders that's what
00:08
this one's about you want to buy a hundred shares of amazork the finest [Person on computer looking at amazork]
00:12
seller of werewolf catching nets on the web but you don't want to pay more than
00:17
a grand a share for them and those shares are volatile, on days when there's
00:21
a full moon the stock shoots to 1,200 on days when the moon barely shows up the

00:26
stock often craters to right around a thousand so you put in your limit order
00:31
which is away from the market... Amazork is trading at $1,187 a share
00:38
this moment thanks to a half moon and you think it'll be two thousand dollars [Line increasing on graph of Amazork shark price]
00:41
a share in five years if what all those crazy astronomers are saying actually
00:46
holds water well but you want to be able to buy it at the right price you'll feel
00:51
like an idiot if you just pay 1,187 and then three months from now it's at 998
00:56
and you overpaid by 20-ish percent so you put in a limit order that is away [Man discussing limit orders]
01:02
from the market and note that away from the market can also work on a sell order
01:07
that's higher than market and you think about that for when the stock gets to
01:11
2000 so you wait and you wait preferably indoors and you know away from any open [Woman sitting by window and werewolf appears]
01:17
windows
Full Transcript