RE:RE:Pretty skinny offeringsMy opinion is that it's done so both large sell and buy orders don't affect the price. That's the intent behind them.
It seems to me that it makes the market less transparent - like if I put in a buy for 5000 , willi I actually get what i want.
Investopedia
Iceberg orders are large orders that are split up into lots or small sized limit orders. They are split up into visible and hidden parts, with the latter transitioning to visibility after the former type of order is executed.
Basics of Iceberg Order
Iceberg orders are mainly used by institutional investors to buy and sell large amounts of securities for their portfolios without tipping off the market. Only a small portion of their entire order is visible on Level 2 order books at any given time. By masking large order sizes, an iceberg order reduces the price movements caused by substantial changes in a stock's supply and demand.
For example, a large institutional investor may want to avoid placing a large sell order that could cause panic. A series of smaller limit sell orders may be more palatable and disguise the extant selling pressure. On the other hand, an institutional investor looking to buy shares at the lowest possible price may want to avoid placing a large buy order that day traders could see and bid up the stock.
Previous research has indicated that traders tend to place order types similar to the amount and pattern of iceberg orders, thereby increasing liquidity and minimizing impact of the iceberg order on overall trading.