r, or do I need to get permission from the state regulators or do I need to create a scarcity by buying shares off the market so that the dealer has to charge a higher price after that and that drives up the price? As I understand it, the dealer has to charge 1/8 of a point for each bundle of stocks that is purchased above the stock availability ceiling.
2007-03-15 02:28:57 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
Ok so I get my buddy investor to announce he wants to buy me, whether it is feasible or not, right?
2007-03-15 07:15:07 · update #1
What you stated in your second sentence is how most companies try to boost their price per share. If a company witnesses that their share price is undervalued, they will buy back an amount that would drive up the bid/ask prices. Since they are decreasing the supply (the stock they buy back becomes treasury), the price of the remaining stock goes up. However, this is a double edge sword because you are also reducing the number of shares available to the public. You are not only using your own cash to buy back the stock, but you are reducing your ability to acquire new cash from selling a greater number of shares.
You could get your books in order, have your company valuated, and offer a second block of stocks at a price an investment bank determines. If you show promising growth, the value of the second offering could help the existing share price increase as well.
2007-03-15 02:39:22 · answer #1 · answered by Anonymous · 0⤊ 1⤋
That person advocating a second stock issuing is the first person I've ever seen say that increasing supply will bring UP a stock price. A second stock issuing isn't ever going to increase the value of existing shares. It's called dilution and shareholders as a rule are against dilution.
If you want to increase your share price, you can always do a reverse split. This is a common tactic for companies trying to get listed on an exchange. Or if you want to increase the value either improve the company or buy back shares, reducing the supply.
2007-03-15 09:47:33 · answer #2 · answered by BosCFA 5 · 0⤊ 0⤋
In recent years, there are have been some new laws enacted to protect shareholders. So anything you do with the sole purpose of increasing the price of your company's stock has to be done very carefully.
Companies issue press releases all the time, to announce new business they have won, or some new breakthrough in technology they have developed. They do this in part so that the price of their stock goes up and shareholders are happy, and also because success attracts more success.
I don't think you can issue a press release simply to say "Buy my stock, it will go up". That will appear to be a promise to some people, and if they lose money they will sue you.
What you should be doing is focusing on your business. Focusing on increasing your sales and cutting expenses. When you have something good to announce, go ahead and issue a press release. But focusing on share price alone will not help in the medium to long term, and in fact will hurt the long-term success of your comany.
2007-03-15 13:25:54 · answer #3 · answered by Scott D 2 · 0⤊ 0⤋
no, if you work for the company, any information that you leak to affect the price of the stock is considered "insider trading" and is highly illeagal
2007-03-15 09:37:56 · answer #4 · answered by mizzouswm 5 · 1⤊ 1⤋
If it sounds too easy, and you would make money off of it - then it's probably illegal.
2007-03-15 09:36:57 · answer #5 · answered by joemammysbigguns 4 · 0⤊ 0⤋