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It is like housing market: the moment there are more buyers than sellers, the prices rise. That's why when funds want to buy(sell) lots of shares, they spread i
by raincom 8y ago
It is like housing market: the moment there are more buyers than sellers, the prices rise. That's why when funds want to buy(sell) lots of shares, they spread it out over weeks by working with market makers. No one is going to naked sell (or short) shares in a rising market.
When an entity acquires more than 5% of a publicly traded company, it needs to file 13(d). And it is hard to acquire even 30% of shares in the span of 3 months: people/algos watch volume every day. This is why it is easier to offer premium and buy the company outright, than to go through the rigmarole of 13(d), working with market makers, etc.