Stocks that aren’t listed on a standard exchange but trade via the NASDAQ system are handled with a really different mechanism. there’s no centralized exchange, but there’s a system of competing market makers who post quotes on NASDAQ stocks. The spreads between the bid and ask prices tend to be much larger for NASDAQ stocks than for comparable exchange-listed stocks, and therefore the number of shares that the like exchange-listed stocks, your broker can tell you what the simplest quotes are at any moment, learn it more on

If you place a order , you’ll probably get the order filled at the present bid or ask quote. Presumably , your limit order will stick with your brokerage and only be executed if the market makers’ quotes change to satisfy your order. for instance , suppose that you simply have an interest in purchasing a NASDAQ-traded stock whose best displayed quotes are a bid of $8 and a suggestion of $8.75. If you place a limit buy order at $8.25, your order probably won’t be filled until one among the market makers decreases their ask quote from $8.75 to $8.25. Your broker is under no obligation to point out your order outside the firm. Many of the larger brokerage firms maintain their own internal limit order books, but there’s no formal limit order book just like the ones the exchanges maintain for exchange-listed stocks. Thus, your order to get at $8.25 may go unfilled albeit there’s an order at another brokerage to sell at $8.25.

Unlike the NYSE, the market makers may trade before your limit order albeit you placed your order first. it’s also important to believe what might happen if your limit order isn’t filled within an inexpensive amount of your time , and you continue to want to trade the stock. If you think that that the stock goes to form a serious move, then it’s going to move before your limit order gets filled. On the opposite hand, if you’re not expecting the stock to travel anywhere soon, it’s going to not run far away from you.