SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jeffbas who wrote (6262)3/12/1999 7:51:00 AM
From: valueminded  Read Replies (1) of 78481
 
Paul:

The liquidity in Nasdaq stocks is often an illusion. Volume can easily be pumped up to create the mirage of liquidity as the same stock changes hands a couple of times on way from seller to buyer. I remember reading a study which indicated that many Nasdaq stocks actully only trade about 30% of their indicated volume as market makers etc get between buy and ask. (I believe it was in Forbes a year or so back)

At any rate, the illusion will become more so for insanely valued stocks as their will be few buyers once momentum players lose interest. Presstek was a good example of this. (all this imho)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext