Surely the stocks are held by all kinds of people and institutions and only a very small fraction of the shares are up for sale at any given time. Am i missing something?
Also the stockprice listed is the price of the cheapest share currently offered, isn't it?
> Surely the stocks are held by all kinds of people and institutions and only a very small fraction of the shares are up for sale at any given time. Am i missing something?
Well, when the price goes up from your buying, more of those shares become available.
> Also the stockprice listed is the price of the cheapest share currently offered, isn't it?
Well, probably last successful transaction, but these are more or less the same number. What you're getting at is that buying the stock piecemeal will drive up the price, which is true.
Usually when you want to buy the entire company, you don't buy it piecemeal on the open market. You offer a premium to the market price to the board and the board decides whether or not to propose the deal to shareholders for approval (tender offer). Or you could do a hostile bid which is where you go directly to shareholders.
KeplerBoy|3 years ago
Surely the stocks are held by all kinds of people and institutions and only a very small fraction of the shares are up for sale at any given time. Am i missing something?
Also the stockprice listed is the price of the cheapest share currently offered, isn't it?
loeg|3 years ago
Well, when the price goes up from your buying, more of those shares become available.
> Also the stockprice listed is the price of the cheapest share currently offered, isn't it?
Well, probably last successful transaction, but these are more or less the same number. What you're getting at is that buying the stock piecemeal will drive up the price, which is true.
Usually when you want to buy the entire company, you don't buy it piecemeal on the open market. You offer a premium to the market price to the board and the board decides whether or not to propose the deal to shareholders for approval (tender offer). Or you could do a hostile bid which is where you go directly to shareholders.