how to get rid of shares in a low volume stock

Discussion in 'Order Execution' started by billyjoerob, Jun 28, 2010.

  1. For reasons that seemed good at the time, I bot 3000 shares of a stock that trades about 3000 shares a day. Now I can't get rid of them. It's a NYSE stock . . . so how do I get rid of the shares? Put a low limit on the shares below the bid on SMART and hope it gets filled? Route it only through NYSE? Sell a few shares at a time over the day? It's not like I'm trying to sell a ton of shares, it's just that the stock hardly trades.
  2. Buzzed


    I'll buy them off of you for 1 penny each. I'm always willing to help a guy out in need.
  3. use a limit order and wait
  4. few different methods/algos firms use to get out of an illiquid position.

    they include.

    participate 10 or 20%

    and yes it could take days to get out completely

    or you could get out faster by just going market with 500 or 1k shares a day or whatever.. some stocks actually don't get get hit as much as you would think. depends really.

    no real great solution.
  5. What's the ticker symbol of the stock?
  6. Idt-c. I got out . . . .bailed out by an appearance by the CEO on CNBC. Life doesn't usually treat you that well. Stock has already traded over 66,000 today . . . so more than 20x usual volume.

    The stock was trading for more than $2 less than the identical stock IDT . . . I was waiting for the differential to narrow.