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> This is often repeated but not necessarily true. This is always true. It doesn't have to go to zero to qualify as plummeting.
by boh 6y ago
> This is often repeated but not necessarily true.
This is always true. It doesn't have to go to zero to qualify as plummeting.
- whatshisface 6y agoI would suggest that my flying car example is one where it's not true. Another example would be intermediate industrial products: everyone who has intermediate chemicals is trying to sell them! Everyone who buys them uses them up as fast as they can, which means that at any given moment, virtually every owner of the intermediate industrial chemical is trying to sell it.
- boh 6y agoThe price of stocks decrease if everyone sells them. Your examples are incompatible.
- abduhl 6y agoWell if everyone is selling then nobody is buying and the quoted stock price remains unchanged. See how ridiculous it is to nitpick purely hypothetical situations?
- boh 6y agoIt's not hypothetical because it happens. Stocks don't operate in low-entropy hypothetical planes of existence, they trade on markets. If your ask has no bids you lower your ask. Sellers will keep lowering it and if there's no bids it will get very near zero in which case the exchange will likely de-list the stock. A hypothetical where you sell one flying car doesn't illustrate a comparable dynamic.