InvestorsHub Logo
Followers 18
Posts 668
Boards Moderated 0
Alias Born 02/08/2008

Re: mvp_money post# 4209

Friday, 11/08/2013 5:37:18 PM

Friday, November 08, 2013 5:37:18 PM

Post# of 6440
The OTC Market flash halt is off-topic, but to answer your core question: inability to trade something does not remove any of its value it just temporarily removes liquidity.

Price is a discovery of supply and demand, often indicative of the most recent marginal exit. Economists tell us that the marginal buyer sets the price -- people who stretch themselves in order to be able to buy in the first place. Marginal buyers are the minority of the owners in any market, but they are also the most active and most eager sellers. When lenders are present to help marginal buyers buy, markets function better but that doesn't mean they are always liquid nor does it mean prices always go up.

If an electronic trading platform closes (temporarily or permanently) this has no impact on the underlying value of the things owned that are or were traded in that market. If you think that helping marginal sellers with liquidity is a compelling business opportunity, you could create an alternative trading market or a website where you are always on the bid for everything but in that case at what price are you always willing to buy anything that anyone else urgently wants to sell and can't find a buyer for elsewhere? That doesn't sound to me like a very good business, but if you feel compelled to create it then it could work out very well and open new doors to new business models.

If you decide to launch such a business, and you want the help of Public Startup Company to develop it with public investors, then you're invited to contact us and we'll provide that help to you just like we do for other public startups.