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re: A summary of what happened today with GME and why securities were restricted
Posted on 1/28/21 at 7:07 pm to teke184
Posted on 1/28/21 at 7:07 pm to teke184
Excuse my ignorance but how would the stock go to infinite cost (100k)? No one would buy at that price which would cause a build up of supply which in turn would drop the price, correct? I know in theory it could keep going and going but you have to have a buyer and at a certain point that becomes impossible.
1
Posted on 1/28/21 at 7:12 pm to GAFF
There has to be people willing to sell in order for someone to buy.
What they are talking about is there being no available shares being offered while people are trying to buy constantly.
At that point, the price of the stock starts jumping heavily because the demand is infinitely higher than the supply.
It is the opposite of what happens when people start trying to sell and no one wants to buy. In that case, the price drops until a taker is found.
What they are talking about is there being no available shares being offered while people are trying to buy constantly.
At that point, the price of the stock starts jumping heavily because the demand is infinitely higher than the supply.
It is the opposite of what happens when people start trying to sell and no one wants to buy. In that case, the price drops until a taker is found.
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