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Regarding your pump-and-dump theory, you lack understanding of some fundamental things about stocks. The huge stockholders are mutual funds and huge institution
by wilfra 14y ago
Regarding your pump-and-dump theory, you lack understanding of some fundamental things about stocks. The huge stockholders are mutual funds and huge institutional investors who rarely sell their shares. Retail investors barely move the needle and own a very small % of outstanding shares.
- OGinparadise 14y agoI understand it well. If they (and founders) don't sell--and they can't easily without causing a major share drop--then the shares available are limited so the price goes up for those that want them. If what you say was the case, why would investment banks spend all that money for researchers? Sure big financial investors and mutual funds do their own research up to a point? Do you think Citibank would buy based on Henry Blodget's 'research' http://www.sec.gov/news/press/2003-56.htm http://www.sec.gov/news/press/2003-56.htm ?