Best Ask

Finance allah shmoop What is best execution it's a toss

up between marie antoinette william wallace and berlin ned stark

and well this guy all right well in finance land

however best execution happens when a broker in a transaction

is giving the client the best price and service possible

That might mean choosing the lowest prices on offers if

the clients buying stocks or it might mean doing some

fancy footwork financially to make a trade move smoothly and

quickly that is the broker acting on behalf of her

client is executing the transaction Best A client cletus wants

a million shares of whatever dot com you the broker

can offer a first traunch or ten percent of the

order or one hundred thousand shares at twenty three thirteen

But when you look on the computer matching box grid

there's an offer to sell a million at the higher

price of twenty three eighteen if those million higher price

shares are sold suddenly in a block to someone else

and glam o there's no supply in the market Well

the stock likely pops You'd guess it would print up

twenty maybe thirty cents a share within fifteen seconds of

that trade getting announced well the client wanted a million

shares but you the broker only got him one hundred

thousand shares And yes you got it form a twenty

three thirteen but that was only ten percent of what

he wanted And now the best offer to buy those

shares is twenty three Forty So yes you've got the

first hundred thousand shares cheap but you didn't do what

your client wanted or order So what was the best

execution in this case Well you should have gotten cletus

the million shares a twenty three eighteen That was the

way to go and would've been the best execution of 00:01:45.308 --> [endTime] this trade Way better than this one