Hangin, these are great questions for bullmarket, and I await his reply. However, let me offer my opinion on one of your questions, and anyone correct me if this is not correct:
"Say for example: All of the shares are in investors hands with no short position.. What is to prevent the price from staying down because noone will sell.. Ask has to move up on volume.Doesn't it??"
If everyone holds their certs, then the bid will have to rise to whatever level it takes to get someone to sell. What is that level? $8? $10? $20? $50? I don't know, but whatever it is, that would be the value of this stock, as driven by market supply and demand. Eventually someone will sell, and they have the freedom to do that at any time, even if they hold the certs.
What we are preventing is not this fair market action, but rather the artificial action caused by MMs who own no shares themselves, but borrow and create shares and then set up their own artificial bids and asks, with no interest in the fair value of our company, but based on trying to make a quick buck.
Hey, not with my shares!
Anyone can correct me if this is incorrect. |
