If I own 22,000 shares of a publicly traded stock and the stock’s average volume is 10,000 shares. How long would it take to sell off those shares without being negatively impacted by an excess of supply?
5-10 days
Depends on the spread, and your desire to sell. 1 stock with .20 spreads could take a month or more - unless you just want to hit the bid. If just want to sit on the ask and trade 500 shares/day, it will take awhile.
sujian Wrote: ------------------------------------------------------- > If I own 22,000 shares of a publicly traded stock > and the stock’s average volume is 10,000 shares. > How long would it take to sell off those shares > without being negatively impacted by an excess of > supply? Negatively impacted by how much? Of course by selling at all you’re affecting the price adversely (perhaps in a very small amount). 1-2% of ADV shouldn’t adversely affect the price too much, but could take you half a year or more to liquidate. Perhaps you should talk to a single stock desk and get some quotes or look at TRSs, synthetic shorts, etc.
Really can’t give a useful answer without knowing the stock’s spread. You may also have a large bid slightly below the NBBBO which would cover your order
I worked at a fund that had a few very thinly traded stocks - took us about 2 weeks to unload about 50k shares at the px we wanted… … though we had to sell lower than we wanted towards the end becuase we needed to dump the position for a full redemption. So it could depend how patient you are/can be.