What is the size of the offer?

Sometimes it is referred to as the size of the quotation, the size of the offer is to do with a number of shares and shares that are offered at a specific bid price per share, but offered in terms of shares blocks. Along with the size of the application, the size of the offer is considered to be an excellent means of measuring potential short -term stock performance, which helps to identify both up and down trends.

merchants dealing with the main stock exchanges such as NYSE and AMEX consider the use of the offer to be very useful in identifying the upcoming trends. This is due to the fact that both of these exchanges work on the basis of maintaining a certain level of balance in relation to the purchase and selling orders using experts. However, many experts consider the use of the offer to be less effective on other exchanges, such as NASDAQ. The contributing factor is that Nasdaq and similar exchanges focus more on the activity of market creators who may not be called specialists.

Determining the viability of responsibility to the size of the offer has a lot in common with the buyer's goals. In cases where the buyer has a desire to increase the number of shares in its possession, the expected short -term performance may be less important than obtaining stocks at a good price. This often assumes certain expectations that the shares have been increasing in the long term, although the short -term outlook indicates a temporary loss. Other times, the expected short -term performance may discourage the buyer from the supply of the stock, because there is no perception of obtaining any value from the transaction.

The size of the offer is not always the most important factor in the decision to submit bids or to hand over the offer. However, there are a sufficient number of investors who believe that as an indicative performance, the size of the offer is worth considering along with other factors.