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Stock markets operations?

I am still confused about stock market operations, please help me with following queries.

Demand and supply rule the market.. ok I have read this thousands of times, but .. who actually changes the price of a stock that comes on bulletin board, or is it the highest bid price (or lowest ask price) which is shown there

2) Does the share volume has something to do with price?

4 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Bulletin board stocks, in the main are a load of rubbish. Look at the historic volume and make sure this has been reasonable for 6 months or longer. By volume I mean value. 500k of stock at $0.0001 is not volume. The price of BB stock is determined by the last trade. This trade could be set up between two connected parties. Detremine what the company ACTUALLY does not what the blurb, corporate website says the company does.

    You may find the company says it has global domination in multi level entertainment industries. Sounds good until you see it has 5 employees and $50k turnover.

    Unless you know the company in some depth avoid like the plague; unless you are at the front end of a share ramp.

    Oh, and BB/Pink Sheets is not Stock Market they are OTC.

  • Anonymous
    1 decade ago

    I second that opinion.

    OTC and the bulletins aren't "the market" they are a cesspool of scam artists and bottom feeders. The only rule that applies is "Buyer don't buy there."

    For major markets:

    Noise rules the general stock market -- rumors and rumors of rumors. On any particular day at any particular moment in any particular trade, who knows what goes. Why? and all the other questions are a crap shoot.

    However, if a trade takes place at that moment, it is because a buyer and a seller agreed on a price and a lot (number of shares).

    Volume RULES the market. He who has the volume (and can drive it) controls the market.

    Speaking in generalities. Market makers look for volume which determines "who" is controlling the price moment. Ask and bid are matched in declining volume order. (A 1000k ask is going to be matched to 100k bids first then 10k bids then 1k...etc)

    Without volume, in an up tick market, the bid controls price movement; down tick market, ask.

  • behr
    Lv 4
    4 years ago

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  • 1 decade ago

    lowest ask

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