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Re: cubs post# 7762

Saturday, 04/02/2011 2:33:27 PM

Saturday, April 02, 2011 2:33:27 PM

Post# of 223958
It really just comes down to common sense. There is no "opposite effect" here. The effect is only a negative one due to that by this action it has reduced the liquidity available to these stocks. Without liquidity, the ability to sell ones shares for any profit has been severely effected and that's the bottom line and name of the game. To be able to sell what you have for more than you paid and have the demand there in order to do it.

Due to the reduced liquidity, traders or investors will not look at this as good investment or trade and choose to put money elsewhere that does have the ability to sell and have more demand and better liquidity (ie: volume). One of the reasons that the companies themselves either directly or indirectly through third parties manipulate the pps and trades to induce volume and interest.

Simple supply and demand facts. More demand, higher price. Less demand lower price. These things have been already documented over and over again, so there really is nothing to "find out". That part has already been done.

One can argue or debate anything about the illegalities or legalities that the company is doing or not doing. Won't change the negative effect of these actions. It is not a "good thing" no matter how you slice it or how many want to spin it.
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