Are stock token and actual stock prices always the same?

Stock token prices move based on the prices of actual stocks.

However, the two prices are not the same at every moment.

This is because actual stocks are not traded at one fixed price either.

Actual stock prices may differ across brokerage firms

Even for the same stock, prices may differ depending on when exchanges and brokerage firms reflect the following information:

• Buy and sell quotes
• Order timing and quantity
• Price information

With a market order in particular, the price shown on screen may differ from the completed price due to momentary trading volume and volatility.

Stock token prices reflect both available prices and quantities

Stock token prices are determined by reflecting not only the actual stock price but also the quantity currently available for trading.

When the US stock market is open, issuers can trade actual stocks or adjust the quantities they hold.

Stock tokens therefore tend to trade at levels relatively close to actual stock prices.

However, the price difference may widen in the following situations:

• The actual stock price changes while an order is being reviewed and approved
• The quantity available at the same price is insufficient
• Actual stock trading is restricted outside market hours or on weekends
• Buy or sell demand is concentrated on one side
• Dividends or interest have been reflected differently

Price differences may be wider on weekends

The US stock market is closed on weekends, so actual stocks cannot be bought or sold immediately.

Stock token prices are then determined by reflecting assets already secured, available quantities, buy and sell demand, and expected prices when the market reopens.

The difference between buy and sell prices may therefore be wider than during regular market hours.

An order may also expire if the available quantity is insufficient.

Tracking the price of an actual stock does not mean a stock token has the same price at every moment.

It means the token moves in connection with the value of the actual stock.