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Size out the book |
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Size out the bookOvert action to exclude a public bid or offer from participation in a print through trading a larger size in the book. Can never size out a market order. See: Priority, shut out the book.Size out the book Similar MatchesCommon size analysisCommon size analysisThe representing of balance sheet items as percentages of assets and of income statement items as percentages of sales. Minimum quote sizeMinimum quote sizeA London Stock Exchange term which refers to the minimum number of shares in which market makers must display prices on the SEAQ for those securities for which they are registered. Normal Market Size (NMS)Normal Market Size (NMS)A system that categorizes the size of transactions that are normal for a particular security and forces market makers to deal within these sizes. Country sizeCountry sizeAny of many measures of the size of a country. For most economic comparisons, however, country size refers to GDP. Normal market sizeNormal market sizeWhen shares are traded on the London Stock Exchange, the market makers have to quote a bid price and and offer price at which they will deal. But the prices they quote, which are disseminated to brokers via the SEAQ system, only have to be honoured up to a certain size of order. The Normal Market Size defines what that figure is for each company and it is based on a percentage of the share's average daily turnover in the previous year.To understand the point of NMS, you have to remember that some listed companies have hundreds of millions of shares in issue, and some have low thousands. The effect on the share price of someone buying 5,000 shares will be much greater if the company is a small one than if it is a blue chip, and it would be unfair on a market maker if the offer price quoted had to apply to any buy order no matter how large.The general rule is that quotes on a n SEAQ screen are really only relevant if the size of an order being placed (whether a buy order or sell order) is within the NMS. If it is higher than the NMS, the market maker will not be obliged to deal at the quoted prices.The NMS system replaced the previous alpha, beta, gamma, delta shares system which was a reflection of the order of the most actively traded shares but had unintentionally become a measure of corporate strength, status and reliability. Further Suggestionscontract size |
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