I believe there's a formula for that, need to find out from those dusty rule books... but anyway if ur interested to see how theoretical price works try looking at Futures Trading. They have pre-auction and pre-closing prices.

The pro of Theoretical prices... Pre auction/preclosing
Is kind of obvious to promote stabil market price, u dont want price sky rocketin too fast hittin during market open and catch everyone pants down and before closing time, some joker unloads killing everyone else. than at last 1 sec buyin everythin bak cheaply.

eliminates manipulation..

Con..

In theory at least there is no manipulation but in practice is kind of a different story...
Brokers (i shall not name who) normally with high clients like say the top 10 biggest banks in the world. they can place 5 m shares sell at X price than pull it out, and shove in another price at Y price lower than X... the whole process continues on... this method is to artifically depress the share price to the price u want.

Say X company now trading at Rm 6.. u feel that the price should be around Rm 5 ...
if u have deep enough pockets u can basically manipulate the shares to your advantage.

That said, u have other players in the market tat might run ur plans... they see u sell 5m, they might buy 5m so a tag of war ensue... but doesnt mean they can't pakat?

this r some brief tips n tricks to bend the rules...

unlikely small players like us will make any dent... so more disav to small players.

not exactly most countries have already deployed such method except My just did it recently...

if ur market is small in terms of value than its only easier to manipulate otherwise its still free for all and "market forces"...

it doesnt get matched, it will only get matched when market opens assuming there is still a willing buyer and seller ready to take at that particular price.

u can still cancel the trade or amend the price, even there is buyer/seller depending on ur position.