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ew home sales declined in August, dropping 4.7% to a 716K unit pace. This decline offsets the strong jump in sales from the previous month. Despite the dip, new home sales remain relatively sturdy due to builder pricing incentives and a scarcity of available homes in the existing market. Lower mortgage rates should eventually boost new home sales, but affordability challenges and a softer labor market will likely limit the rebound.
The stock market has experienced high levels of volatility recently. If you're considering participating in fast-moving markets, be aware that there are significant additional risks involved. Wells Fargo Investments, LLC won't restrict trading on volatile securities, but it's essential to understand these risks before making a trade.
Higher margin maintenance requirements have been implemented for certain stocks, including Internet, e-commerce, and high-tech issues. These stocks will have an initial and maintenance requirement of up to 70%. This higher requirement applies to both new purchases and current holdings.
A fast market is characterized by heavy trading and highly volatile prices. Many events can trigger a fast market, such as a highly anticipated IPO or analyst recommendation. In these markets, service response and account access times may vary due to market conditions and system performance.
In a fast market, real-time price quotes may not be accurate, and orders are executed on a first-come-first-served basis. This can result in significant delays and affect your execution price. Large orders may be filled in smaller blocks at different prices than the current market quote.
Limit orders can limit risk by establishing a specific buy or sell price. However, they do not guarantee an execution. Freeriding is prohibited, and customers must avoid buying and selling the same security within the same trading day using proceeds from its sale to pay for the original purchase.
Stop and stop-limit orders are also affected in fast markets. A stop order becomes a market order once the security trades through the designated stop price, while a stop-limit order becomes a limit order at the specified price or better after reaching the stop price.
