Login
Ratjoy.com » Forums » EoS Stock Market Discussion » what does affect shares price?

what does affect shares price?


Gamma Alpha
RJ: Gammatron
CO: Gammatron

Post Rating: 0
+ / -

Total Posts: 104
Karma: 62
Joined: Apr 7, 2012
What does affect stock price fluctuaction? I only noticed that the fewer shares available, the higher the price.

There is a serious implication of this if this is the only factor affecting shares price over time. Let's say there's a company which issued 100M shares. there are 20M available, 80% is already in the hands of other players. Let's assume that the price of 1 share is 10$. I assume there's no point in buying all the remaining shares, because the price will never be higher than the final price after my contract is finalized. There will be simply no more shares to buy. Even buying 10M shares is risky, because If I want to profit from reselling my 10M shares, someone else would have to buy the lat 10M (he/she won't do it, if my first assumption is true - this kind of decision would only bring him/her loss).

So I assume it's only worth buying shares when there's a large amount of them available (say, only 20% is in hand of other players).

Not sure if my reasoning is correct, because I noticed that in a situation when very few shares are available (or even 0 shares - like in case of TANK http://www.ratjoy.com/eos/stock-view.php?ss=TANK) prices behave in contrast to my assumption. Now TANK shares are worth 22.28, there are 0 of them available, however a couple of hours back they were worth almost 26$.

Maybe I'm missing something else - maybe the jumps of prices are affected not only by how much shares you buy, but also on the number of transactions? Say, I'm buying 10M shares in 10 rounds (1M each) - will the final value of the shares be higher than if I bought them in one go? Can someone please explain me those mechanisms?
Gamma Alpha
RJ: Gammatron
CO: Gammatron

Post Rating: 0
+ / -

Total Posts: 104
Karma: 62
Joined: Apr 7, 2012
Maybe the answer to my question is somewhere here, but I see that someone asked the same question http://www.ratjoy.com/forum/topic/how-do-shares-keep-going-up/ yet he didn't get the answer...
Roald Adriaansen
RJ: Wuvil
CO: Wuvil

Post Rating: 0
+ / -

Total Posts: 146
Karma: 281
Joined: Feb 4, 2012
As the owner of TANK... I have no clue why the stock price behaves like that... :S
Gamma Alpha
RJ: Gammatron
CO: Gammatron

Post Rating: 0
+ / -

Total Posts: 104
Karma: 62
Joined: Apr 7, 2012
anyone?
Chad the Launderer
RJ: Synreal
CO: Synreal

Post Rating: 1
+ / -

Total Posts: 148
Karma: 71
Joined: Feb 11, 2012
I think the current stock market is pretty shoddy. I have lost tens of billions in it so I recommend not using it until we figure out exactly what drives prices. Seems arbitrary and random right now. My ELRY stock makes my company look worse than companies making 1/10th of what I do because EPS is calculated based on NW and not actualy revenue (99% of which I reinvest into the company.)
Moe Jack
RJ: Moejack
CO: Moe Jack

Post Rating: 0
+ / -

Total Posts: 128
Karma: 74
Joined: Apr 7, 2012
Hear hear! ELRY should be worth at least 30!
Jack Park
RJ: Jack Park
CO: Cicero

Post Rating: 0
+ / -

Total Posts: 19
Karma: 26
Joined: Apr 15, 2012
I believe networth and profits are taken into account. When I toke out a 35M$ loan as Rommney Inc. the price of the stock fell 6 dollars, from around 14 to around 8. As the investments funded by the loan began to pay off why stock went up to 10$.
Gamma Alpha
RJ: Gammatron
CO: Gammatron

Post Rating: 0
+ / -

Total Posts: 104
Karma: 62
Joined: Apr 7, 2012
Well, it looks like there are just pure speculations floating around and everyone is just guessing how it works and why...
ryan hofmann
RJ: Kurtus Kurt Kurtington
CO: Doctor Kurt Hofmann

Post Rating: 0
+ / -

Total Posts: 23
Karma: 10
Joined: Apr 10, 2012
This can never end up like black tuesday. Never ever.


You need to register or login to post a reply.