mike95910

Does it effect the price if you buy/sell a really big number? For instance, 12000 shares?
I know that when a company bails out, it's a noticeable decline but I was wondering how large would that number have to be? Also if a company BUYS that amount, does the stock shoot upwards just as it declines with a huge sell?

CrazyBull

Buying that amount of shares could possibly affect market price greatly or it could affect it only a small amount. One thing that has to be considered is the average share volume. If a stock normally trades 12,000,000 shares daily, then 12,000 is only .1%, so it might not affect the prices but a few pennies. However, if the volume is lower, say 360,000, then 12,000 shares would be 3.33% of the average volume, and could have greater impact.

Example: MSFT, 76 million average, 36million today when i looked at it. Market price is at $29.77, Bid is 29.77 x33100 and ask is 29.78 x 27800. If you were trading 12,000 shares, it'd barely be a drop in the bucket.

Some people talk about "following the 'Big' money", which I believe means seeing what people like Buffet, other investing mogols, and large investment firms are buying into at high volume. Please correct me if i'm wrong on this. But I think then common idea here is that if one of those people decide a stock is going to do well and buy into a large or huge position on it, other people want to get in on what the "geniuses" are buying and thus the price gets driven up because of the higher demand. Supply > demand, price goes down cause more is available than desired, but if Demand > supply, price goes up because more is desired when not enough if available.

StockHunter

It all depends on the stock at the time. If you wanna see a crazy ammount of shares look at QQQQ on level 2 qoutes sometime during market hours.

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jakehussie

Knowing the effects would surely be advantage since this would allow you to ascertain different kinds of problems or situations in the future.

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