Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Message: Re: A positive spin.
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Jul 16, 2014 11:08PM
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Jul 17, 2014 06:29AM

I don't agree, Dash8400.

According to the Investopedia definition, liquidity is defined as "the degree to which an asset or security can be bought or sold in the market without affecting the asset's price."

This has nothing to do with how high or low the share price is, but rather with the amount of money that is to be invested or devested. If I want to invest $10,000 in a certain stock and the share price is a $2, I'd buy 5,000 shares. If the share price is $10, I'd happily buy 1,000 shares. Can we agree on that this makes no difference?

However, whether I am actually able to invest my $10,000 at the current share price depends on the supply, i.e. whether there are enough people willing to sell enough shares in sum making out $10,000 at the current price. The more supply in terms of people and their money, the better my prospects.

So the question is not "How can we increase the number of shares?" but rather "How can we increase the number of market participants?"

Going to the NASDAQ is one answer to this question. Optically adjusting the share price at a level allowing investment companies to trade POET shares is another answer.

Andrea ("Powered by POET")

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