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Re: rbl100 post# 4147

Thursday, 02/22/2007 11:09:57 AM

Thursday, February 22, 2007 11:09:57 AM

Post# of 221867
YOU UNDERSTAND THE ENGLISH OF WHAT I AM SAYING, but you do not understand the 'principles' of the economics in the content (Some call them 'laws' but that is an incorrect term)

"......Whether a company has a trillion shares or 10.000 shares, if there are enough shareholders the pps will go higher......"

THIS IS INCORRECT. The price of a share has nothing to do with how many shareholders there are (or how many cutomers/buyers, unless measured by other parts of the equation which you choose to ignore. It apples to all trade - all goods, not just shares.

The only circumstance that will make the share price go higher
is if the demand will exceed the supply. That would mean most holders not wanting to sell, the company not creating more shares, no naked short sellers creating shares, and the company doing something to attract more buyers in excess of shares available.


All that would have to be valid, and constantly present during a sustained rise. If not, it would collapse like a pie crust with nothing under it, or if you like, burst like a bubble once the negative imbalance occurred.


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