I see Merill Lynch Trust Co. is planning to sell over 1 million shares of Yahoo stock on April 20, 2007. What will happen to the stock price that day?
2007-02-25 12:30:07 · 5 answers · asked by j0hnrcash 2 in Business & Finance ➔ Investing
It is a little difficult to say. It to their benefit to sell it in such a manner as not to effect the market price detrimentally. If it were I selling the shares, I would do it in 50,000 share blocks over several days. A good stock broker such as Morgan Stanley or Goldman Saks will know how to handle such a transaction without adversly effecting the price of the stock.
It is not beyond the relm of possibility that they might find a buyer wanting the entire amount. That has happened frequently in the past.
2007-02-25 13:54:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The price of the stock will be unaffected because once the news came out.. it manipulated the market on the day of the news, it will not affect the stock on that day.
-if your looking for ideas, short the nasdaq, you'll have less risk.
2007-02-25 14:49:33 · answer #2 · answered by ylahaie13 2 · 0⤊ 0⤋
I would think that it would have very little effect on the market.
Millions of Yahoo shares are traded daily, and Merrill lynch will try to get best price they can..The effect on the price will be minimal.
2007-02-25 14:47:31 · answer #3 · answered by bob shark 7 · 0⤊ 0⤋
Supply and demand. Most likely, with an increased supply for sale that day, it will go down some. Probably not enough for you to make money on it.
2007-02-26 06:05:29 · answer #4 · answered by Quixotic 3 · 0⤊ 0⤋
It can go up. It can go down. It can stay the same. All depends on "supply and demand".
2007-02-25 15:06:26 · answer #5 · answered by Common Sense 7 · 0⤊ 0⤋