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    What do you mean? Is Sainsbury's listed? If so then yes
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    Listed on the FTSE 100, trading on the LSE (London Stock Exchange)

    LSE Market open 8 am to 4:30 pm (Mon-Fri)
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    http://www.hl.co.uk/shares/shares-se...rdinary-28,47p
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    Ticker Symbol SBRY
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    Shares in Sainsbury look cheap on a P/E basis. I like the dividend as well, might be worth a buy if the market decides to crash anytime in the future. Volume is good as well, liquid security. Should be easy to sell or buy large amounts without going too far down the order book.

    Going by the last close on the LSE, the best sell price on the order book is 250.9 and the best buy price on the order book is 251. I don't know the size of those orders, but I'm guessing your order would be filled reasonably within those prices.

    If you check LSE level 2 data, you can see the full order book, so you will be able to see the full liquidity of SBRY, you will be able to see the limit orders placed in the order book completely (by market makers and retail investors).
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    ^^ sorry if what I wrote is complex, it might be, if you are a new investor
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    Note....just seeing limit orders in the order book is not the whole story. The market can move very fast, and orders can be pulled
    and entered into the order book. Market orders are orders put in to achieve the best price for a given quantity of the security to be sold/bought, they essentially reduce liquidity.

    But any FTSE 100 company is going to have great liquidity and most retail investors don't need to worry about liquidity, unless you were looking to get £1,000,000 worth of sainsbury stock, then you may end up paying a lot more than the best selling price.

    With illiquid securities, sometimes you can't even get filled with super large orders. You will see a lot of people putting in Fill or Kill orders for illiquid securities, where if they are not filled, the order is pulled from the market.
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    But OP do you want to buy Sainsbury stock? saraxh
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    (Original post by saraxh)
    Thanks. I'm a business student. I understand it.
    Good, it's important you understand how the order book in a stock exchange functions. It's very important if you wanted to buy illiquid securities, such as those listed on the FTSE Small Cap Index.

    I actually learnt all this stuff from YouTube funnily enough, I have around £24,000 in the stock market, so I kind of need to know. But any finance degree should teach you the basics you need to invest.
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    You will also tend to find small cap stocks are more volatile than large cap stocks. Small caps usually have a higher market beta as well compared to large caps, but it depends on industry.

    Market beta deals with movement with respect to the market as a whole. So defensive stocks like SSE or Unilever or Reckitt Benckisser should in theory tank less when the market crashes and boom less when the market booms.

    Best place to learn is from a book called "The Intelligent Investor" by Benjamin Graham (Warren Buffett's professor at Columbia University)
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    (Original post by michaeldeport)
    Note....just seeing limit orders in the order book is not the whole story. The market can move very fast, and orders can be pulled
    and entered into the order book. Market orders are orders put in to achieve the best price for a given quantity of the security to be sold/bought, they essentially reduce liquidity.

    But any FTSE 100 company is going to have great liquidity and most retail investors don't need to worry about liquidity, unless you were looking to get £1,000,000 worth of sainsbury stock, then you may end up paying a lot more than the best selling price.

    With illiquid securities, sometimes you can't even get filled with super large orders. You will see a lot of people putting in Fill or Kill orders for illiquid securities, where if they are not filled, the order is pulled from the market.
    Sometimes less is more when it comes to number of posts and indeed reading the situation...
 
 
 
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