Re: A positive spin.
in response to
by
posted on
Jul 16, 2014 03:48PM
Andrea,
Supply and Demand does work and we are well aware of the principles. thus the need to provide liquidity. How do you do that??
You issue new financings and/or stock options!
AND/OR
Fowards splits.
Your demand drops off when the SP gets to high, therefore it is necessary for companies to offer its stakeholders forward splits to provide the liquidity that caters to all investors on the exchange. Done all the time.
When there is too much liquidity the company will take it upon themselves to buy back shares on the open market. this way they can somewhat self regulate the supply side.
BTW, Can't wait to get rid of Instinet 013.