Is there a limit in how much you can invest in a company?

Question

- Lets say I have $25,000,000 , and I want to invest all of it (DON'TT ASK WHY) in a company that has stocks for $2,00 a share. Can I buy that many stocks? And if I do buy that many shares, will the price of the stock skyrocket? Don't use fancy investment lingo. Thanks.

Answer 1

As you accumulate your 25million dollars worth of shares, you will very soon drive the price up astronomically, you will end up paying hundreds of dollars for a share that is still only worth $2.

the problems are this...when you want to sell not many people will give you $100 for a $2 stock, because they don't have $25,000,000 and no brains.

2. As soon as you get 20% of the stock, you are an insider and must register with the securites commision and report all buying and selling you do, and this will be public knowledge.

I am sure there will be investigations into where you got your money, did you pay taxes on it as it was made and all kinds of scrutiny you don't want.

All to try to get the stock at a high price to unload and make a fortune.
The market will tell you , when you go to sell IT IS STILL A $2 stock
You Lose.

Answer 2

You can buy as many shares as are available to investors. The share price might fluctuate, but I don't think it will really matter. People buy thousands of dollars, millions of dollars into one company all the time, but usually what makes the stock move in the market is an announcement of some kind that shakes up the investor's confidence in the company (whether it be good or bad)

Answer 3

You can if you want. How do you think some companies buy huge portions of others and come to be majority share holders?

Answer 4

you can, but stock brokers advice you take into consideration how big the company can actually get.