I mean I wouldn't want to buy it at $30 when it was $10 the day prior. Who will buy it from me?
2007-11-30 11:04:28 · 9 answers · asked by New Investor 2 in Business & Finance ➔ Investing
So the company doesn't have to buy them back or something? Is it possible to own stock but not be able to sell it at the "market value"??
2007-11-30 11:12:21 · update #1
The spiking up is normally determine by good news such as beating analyst earnings, merger, confirmation of contracts and a vote of confidence from the mutual funds.
The US stock market is divided in to:
1) opening bell until closing bell
2) closing bell (which is after market to premarket) to the opening bell the next day.
Most trading activities that normal traders like you and me would trade from the opening bell until the closing bell.
But for the Fund Managers, they are allowed to trade the after market until the premarket. It means that there are market activities even though after the trading hours. This is how it determines the stock price for the following day.
Usually the company earnings announcement and mergers are being announce during the after market and premarket. The Fund Managers are the traders who determine the stock price at the news.
When the market open during the opening bell, the last traded stock price in the premarket will be taken in to account and that is where usually the spiking or gaping occur during the opening bell.
2007-11-30 15:26:18 · answer #1 · answered by Alfred Chew 2 · 0⤊ 0⤋
The price jumped because of the efficient market hypothesis. Stock prices are affected by news and events that effect the companies future cash flows. The stock price will automatically adjust to the fair market value. Apparently there could be news that someone knows about that is driving the stock up. You can sell by using limit orders to secure the price you want. The execution may not happen or take longer than a market order. Good luck!!
2007-11-30 19:23:24 · answer #2 · answered by Halibutsoap 1 · 0⤊ 0⤋
Someone who thinks it will be at $60 tomorrow.
You shouldn't care what an investment cost yesterday. You should only care about:
1. What income (dividends, rent, interest, royalties, etc.) is it paying right now?
and
2. Will it be worth more in the future?
And, no, you can always sell something at its market value. That value may be nowhere near what you paid for it, though. Like the value of a house has absolutely nothing to do with what you paid. It's only determined by what a new buyer in today's market is willing to pay today.
2007-11-30 20:49:31 · answer #3 · answered by Keep On Trucking 4 · 0⤊ 0⤋
I think the market vote the current price at 30 instead of the 10. So you are in pure profit of 20!
2007-11-30 21:30:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Someone who thinks $30 is a good price. Will it stop climbing at $30? What is the peak? $35? $40? $80?
2007-11-30 19:12:05 · answer #5 · answered by beckoningsubstitutes 5 · 0⤊ 0⤋
Someone who thinks the P/E and other ratios justify a higher price. Do your own math, read up on the company, compare it to other companies in the same industry, then decide if you have a bargain or should look elsewhere.
2007-11-30 19:10:23 · answer #6 · answered by r2mm 4 · 0⤊ 0⤋
The price is determined by market supply and demand. That's why it fluctuates.
2007-11-30 19:14:24 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Someone who thinks it will go higher buys it.
2007-11-30 23:13:06 · answer #8 · answered by !!! 7 · 0⤊ 0⤋
anyone who thinks the price will keep going up and they can make a profit from it.
2007-11-30 19:07:53 · answer #9 · answered by fat_albert_999 5 · 2⤊ 0⤋