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This guy doesn't understand wall street

  1. Jan 24, 2006 #1

    Pengwuino

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    http://famulus.msnbc.com/famulusgen/ap01-24-163025.asp?t=apnew&vts=12420061708

    Microsoft's average daily volume is ~62 million. Microsoft's shares are up $0.02 in after-hours trading (when the news report came out) :rofl: :rofl: :rofl:
     
  2. jcsd
  3. Jan 24, 2006 #2

    JasonRox

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  4. Jan 24, 2006 #3

    Pengwuino

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    No, he does not work for Microsoft, a competitor, nor does he work for any financial institution under the governance of the SEC.
     
  5. Jan 24, 2006 #4

    JasonRox

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    Maybe he should ask God to buy some too.
     
  6. Jan 24, 2006 #5

    Pengwuino

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    God's not that stupid....
     
  7. Jan 24, 2006 #6
    God already has controlling interest. Plus him and his wife and Bono won Person of the Year.
     
  8. Jan 24, 2006 #7

    Evo

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    uhm, he's announced the day to sell them, so every one will expect it
     
  9. Jan 24, 2006 #8

    Pengwuino

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    Plus "1 or 2 shares". Ok so lets say this guy realistically has the attention of 100 people.... or well, we'll be generous here, 10,000,000 people. 20,000,000 shares being sold of a stock that normally does 60,000,000 a day isn't going to do much. If everything actually went according to this far fetched plan, at the absolute most the NYSE might do it tell the brokers to bundle the orders or something to make it a little easier on the system. How stupid though! You might end up paying more money on commissions then the stocks are even worth!
     
  10. Jan 24, 2006 #9

    JasonRox

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    The question isn't about volume it's about the number of transactions.

    10 000 000 transactions is a hell of a lot for one company.

    Selling usually causes the stock to go down, so by doing 10 000 000 transactions it should lower the stock. I doubt this would happen though.
     
  11. Jan 24, 2006 #10

    Pengwuino

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    Companies do not do transactions, brokerage houses do. Ironically, the Nikkei crashed a few days ago when it was overloaded with transactions.

    I just remembered MSFT is on the NASDAQ which is computerized which means they would indeed be vulnerable to a large transaction problem. The companies price wouldn't be hurt much because this is all public knowledge, but the NASDAQ software might be vulnerable.
     
  12. Jan 24, 2006 #11

    Evo

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    Usually, it's an unexpected sell off of a large portion of stock that triggers others to panic and sell because they don't know what is happening. If everyone knows it's a planned one time sell off, no panic, no triggered sell offs. No big deal.
     
  13. Jan 24, 2006 #12
    buy ameritrade to take advantage of the number of transactions. and I better get a damn lol for the god has controlling interest joke. Bill gates=god. damn I hate explaining the funny ones.
     
  14. Jan 24, 2006 #13

    Pengwuino

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    Planned sell-offs are normally incorporated into stock prices anyways. Hell, planned large buys are also incorporated into stock prices once it is found out.
     
  15. Jan 24, 2006 #14

    JasonRox

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    This is exactly why nothing would happen.

    It's not because of volume.
     
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