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Re: charlie T colton post# 4048

Tuesday, 05/31/2016 12:14:29 PM

Tuesday, May 31, 2016 12:14:29 PM

Post# of 6624
Buys and sells.

I continually remind myself that supply and demand are among the factors that determine price, so increased demand drives stock price up and share dilution drives stock price down. Seems we have another factor to think about here, the motivation to buy or sell determining how elastic the offer price is to the bid and vice versa. When sells are defined by the trade price being closest to the bid that says that the offer price is most elastic. What we don't know is why the offer price is more elastic. At the point of sale elasticity is out of the investor's hands and in the hands of the trader. I ask whether "trader elasticity" is due to immediate or future concerns.

On the other hand there's trading by using a discount brokerage for thinly traded and, I'm guessing in AMAVF's case, an OTC stock. That means one is likely dealing with a large spread so patience and knowledge of the supernatural help.

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