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The bid/ask is a "market". If someone says "make me a market on XYZ" they're asking for a two way price. More generally a market is a place where buyers and sel
by totalZero 6y ago
The bid/ask is a "market". If someone says "make me a market on XYZ" they're asking for a two way price. More generally a market is a place where buyers and sellers meet. The dynamics of that market can change even when no trades cross.
Companies declare bankruptcy and continue trading all the time. Look at CHK. Not every bankruptcy is a liquidation.
You're just making stuff up.
- imtringued 6y agoLets say I am a private individual that can print an infinite quantity of money. I can buy all the stock and relist it at overinflated prices. If nobody is buying the stock at that price it simply isn't worth the price I chose. If someone bought options that forces them to buy my stock then yes, the stock truly is worth as much as I chose. Most markets are too liquid for people to notice what happens when there is zero liquidity. Meanwhile in prosperous universe commodity exchanges are illiquid. Lots of players put up products at overinflated prices and nobody is buying them. They just stay there forever and thus do not influence the market price. Heck, some players intentionally use the commodity exchange as an infinite storage mechanism because you aren't even trading futures like in the real world, you're trading the good itself, which causes it to be immediately transported from your inventory to the commodity exchange.