3 ms·
It is true that if no-one wants the stock then the value of it will drop. This however should (under normal circumstances) only happen if the company is not pro
by sorbits 17y ago
It is true that if no-one wants the stock then the value of it will drop. This however should (under normal circumstances) only happen if the company is not profitable and is in debt (to the point where its physical assets amount to the same or less than its debt).
It is not a psychological game, i.e. if someone somehow managed to make the Microsoft stock drop to zero then I would effectively be able to get all of Microsoft for nothing, that’s a pretty sweet deal, and why that stock won’t drop to zero as long as they are profitable.
The “psychology” that affects the stock prices are in speculation about the future worth of a company, and that is why you see a disconnect between a company’s net worth and market cap — generally the market cap should be above its net worth, otherwise someone should buy all the shares and liquefy the company :)