First the warning. Watching a new product I noticed that the range for the day was $19.85 the low to $30.12 the high. The product (discussed below) is an ETF of Master Limited Partnerships-basically a yield play.
The only way the high/low range could be this wide is if an unsuspecting investor entered a market order at or before the open of the market. Market makers (on a new issue the source of shares to buy) typically enter wide to very wide quotes to satisfy exchange requirements. Once the market opens and the underlying components of the ETF open, the Market Maker will tighten up the bid and the offer to more accurately bracket/reflect the NAV of the ETF. Frequently the market order that has been entered before the spread has been tightened will be executed at a disadvantageous price. If the price is really poor, there is a mechanism available to either break the trade (cancel) or adjust the price. The unfortunate part of this effort to change a trade is that there is a fairly small time window during which the investor must inform the firm holding his account.
Key defense-DO NOT ENTER MARKET ORDERS PRIOR TO THE MARKET OPEN ON NEW OR ILLIQUIDÂ
ETFS. I personally never use market orders.
SOG's ETF Report 
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