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Kenya, I said buyers tend to drive the prices down and sellers drive prices up. I have observed this from I-Watch. Here is my effort on an explanation. For example, an institutional buyer wants to get the best price for 100K shares. He doesn't say I'll buy them at or above market price, usually always below. If there are enough willing sellers, his price is the best they can get and they sell at the offer or if acceptable to the buyer maybe a little more. The net effect of this over a day is prices going down, not a lot but prices going down. The reverse is true for selling. The law of supply and demand works, but in this case we do not know the supply or demand. For Compaq stock right now there seem to be plenty of shares out there for sale, and it is a buyers market, the price is going to drift down. There are plenty of stock holders that want to get out of this stock at these prices, even if at a loss. Hopefully, when and if we get rid of these willing sellers, the sellers wanting a higher price will take over. This will decrease the amount of stock available and drive up the price. More buyers is always good, since eventually they will drive down the supply and eventually drive up the price. I am no expert on this, hope this helps. |
