Chapter 8 - How Shares Are Traded Flashcards
1
Q
What does SETS mean?
A
Stock Exchange Electronic Trading System. This is where the vast majority of the fully listed companies are traded with some AIM companies.
2
Q
What is a spread?
A
A spread is the difference between the highest buying price and the lowest selling price.
3
Q
What is the difference between a liquid and illiquid share?
A
A liquid share will see a trade go through every few seconds. Such as HSBC, BP or Vodafone. An illiquid share may go a whole day without a single deal being struck.
