What does it mean when a stock sells for more than book value?

Note; companies will typically sell for more than their book value in much the same way that a company will sell at a multiple of its earnings. The median P/B ratio for stocks in the S&P is just over 3. While a P/B of less than 3 would mean it's trading at a discount to the market, different industries have different median P/B values.

What happens if I don't have shares in a sell trade?

If you don't have the shares, you will end up short delivering or defaulting on the sell trade. Exchanges conduct an auction to buy the shares on your behalf and deliver to the buyer of your sell trade on T+2 (Trade date+2). This can lead to an auction penalty depending on the price at which the exchange settles the trade.

Are stocks undervalued?

Conversely, if the yield on stocks is higher than the 10 Yr., then stocks would be considered undervalued. Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. the virtual risk-free investment offered in U.S.-backed Treasuries.

What does liquid securities mean?

Securities that are liquid means that they can be easily bought or sold in the market in normal market conditions. In certain cases, where no TER or OCF is shown, additional costs may apply. Please ensure you have read the Key Investor Information Document, Factsheet, Prospectus and any other relevant documentation prior to investing.