shares: spike price drop?
Discussion
That's a question that requires a very lengthy answer which I can't provide at the moment as it goes to the basics of the stock market.
Firstly the old adage of the stock market being run by fear and greed is something that rings true. So at times when there is sentiment about the economy, be it positive or negative this will affect the stock market.
Stock market prices can dip like that for any number of reasons. It can happen for reasons external to the stock market - such as terrorist attacks (prices plummeted after 9/11) or major political events such as wars. The markets can also fall due to other markets having an impact - such as Dow Jones and the not too distant "global sell-off" the chinese markets caused a few months ago. A company share price can fall for any number of reasons, bad financial results, profit warnings, directors selling shares, something related to the industry (eg. Partygaming shares falling over £1 when they pulled out of the US following the bill that was passed), slow down in growth, little positive up-side in the market and so on. These are only a very small number of reasons.
The people buying these shares can range from the small private investors trying to get in on a good deal and maybe hoping for a turn-around as they think the company has been over-sold, market makers buying up positions to raise the price and if they feel it's a good investment and even if the company buying shares in itself to try and prevent the price from falling or it believes they're a good buy at that price.
It's a broad answer I appreciate and there's a lot to explain but I hope it helped somewhat.
Firstly the old adage of the stock market being run by fear and greed is something that rings true. So at times when there is sentiment about the economy, be it positive or negative this will affect the stock market.
Stock market prices can dip like that for any number of reasons. It can happen for reasons external to the stock market - such as terrorist attacks (prices plummeted after 9/11) or major political events such as wars. The markets can also fall due to other markets having an impact - such as Dow Jones and the not too distant "global sell-off" the chinese markets caused a few months ago. A company share price can fall for any number of reasons, bad financial results, profit warnings, directors selling shares, something related to the industry (eg. Partygaming shares falling over £1 when they pulled out of the US following the bill that was passed), slow down in growth, little positive up-side in the market and so on. These are only a very small number of reasons.
The people buying these shares can range from the small private investors trying to get in on a good deal and maybe hoping for a turn-around as they think the company has been over-sold, market makers buying up positions to raise the price and if they feel it's a good investment and even if the company buying shares in itself to try and prevent the price from falling or it believes they're a good buy at that price.
It's a broad answer I appreciate and there's a lot to explain but I hope it helped somewhat.
Edited by g4ry13 on Thursday 24th May 10:38
Horse_Apple said:
zed sump said:
what causes a spike price drop in a company's share price? (-who's buying when it hits the bottom?!)
That has all the hallmarks of a litre of red wine combined with a chubby digit let lose on an order platform.
didn't that happen recently on the jap market when an operator got his decimal places wrong?!limpsfield said:
I think that is duff data - I have checked the price for CMU which is Colonial Muni INcm according to my software and it never traded down there - so it's a duff price that Big charts are displaying
compuware corphttp://mwprices.ft.com/custom/ft2-com/html-interac...
g4ry13 said:
That's a question that requires a very lengthy answer which I can't provide at the moment as it goes to the basics of the stock market.
Firstly the old adage of the stock market being run by fear and greed is something that rings true. So at times when there is sentiment about the economy, be it positive or negative this will affect the stock market.
Stock market prices can dip like that for any number of reasons. It can happen for reasons external to the stock market - such as terrorist attacks (prices plummeted after 9/11) or major political events such as wars. The markets can also fall due to other markets having an impact - such as Dow Jones and the not too distant "global sell-off" the chinese markets caused a few months ago. A company share price can fall for any number of reasons, bad financial results, profit warnings, directors selling shares, something related to the industry (eg. Partygaming shares falling over £1 when they pulled out of the US following the bill that was passed), slow down in growth, little positive up-side in the market and so on. These are only a very small number of reasons.
The people buying these shares can range from the small private investors trying to get in on a good deal and maybe hoping for a turn-around as they think the company has been over-sold, market makers buying up positions to raise the price and if they feel it's a good investment and even if the company buying shares in itself to try and prevent the price from falling or it believes they're a good buy at that price.
It's a broad answer I appreciate and there's a lot to explain but I hope it helped somewhat.
appreciate what you say but these reasons don't seem to be the sort of trigger for a sharp drop, a near zero price for a week or 2 and then an equally sharp rise to almost the same price (as that before the drop). would a suspension from a market give this chart (think it just leaves a gap doesn't it?)Firstly the old adage of the stock market being run by fear and greed is something that rings true. So at times when there is sentiment about the economy, be it positive or negative this will affect the stock market.
Stock market prices can dip like that for any number of reasons. It can happen for reasons external to the stock market - such as terrorist attacks (prices plummeted after 9/11) or major political events such as wars. The markets can also fall due to other markets having an impact - such as Dow Jones and the not too distant "global sell-off" the chinese markets caused a few months ago. A company share price can fall for any number of reasons, bad financial results, profit warnings, directors selling shares, something related to the industry (eg. Partygaming shares falling over £1 when they pulled out of the US following the bill that was passed), slow down in growth, little positive up-side in the market and so on. These are only a very small number of reasons.
The people buying these shares can range from the small private investors trying to get in on a good deal and maybe hoping for a turn-around as they think the company has been over-sold, market makers buying up positions to raise the price and if they feel it's a good investment and even if the company buying shares in itself to try and prevent the price from falling or it believes they're a good buy at that price.
It's a broad answer I appreciate and there's a lot to explain but I hope it helped somewhat.
Edited by g4ry13 on Thursday 24th May 10:38
I took a look at the CMU chart on another source and can't see that pattern (if it happened in the last year) so I may hazard a guess and say that chart's off as someone previously pointed out. If a share is suspended - it's just that; there's no trading taking place so the price can't move. A recent example of this is Betex who suspended their shares and the price hasn't moved and won't until it starts trading ever (if it ever does). If you can find another example i'd gladly take a look into it - i'm no expert at this stuff and always happen to learn something new too.
Edited by g4ry13 on Friday 25th May 00:55
g4ry13 said:
I took a look at the CMU chart on another source and can't see that pattern (if it happened in the last year) so I may hazard a guess and say that chart's off as someone previously pointed out. If a share is suspended - it's just that; there's no trading taking place so the price can't move. A recent example of this is Betex who suspended their shares and the price hasn't moved and won't until it starts trading ever (if it ever does). If you can find another example i'd gladly take a look into it - i'm no expert at this stuff and always happen to learn something new too.
Suspension holds at last price, not zero.Edited by g4ry13 on Friday 25th May 00:55
Big Charts uses data from a company which is not what you would call a pro feed so they won't be spending the money to correct fat finger errors from their feed.
Step away from the chart
Morning Limpsfield. Remember the old Hemscott days? Hope all is well.
Horse_Apple said:
Suspension holds at last price, not zero.
That's what I said. "If a share is suspended - it's just that; there's no trading taking place so the price can't move." It won't move up or down from the price it was suspended at. Unless you were just clarifying to my round-about answer 
Just saw you were a broker in your profile too. Just got a few questions as it's something i'm interested in. Do you do it for an institution, how did you get into it and i'm just coming out of university and noticed a lot of institutions want past selling experience so was just deliberating some sort of selling job for a year to get some experience. Or perhaps to just dive straight in.
Oh...and lastly, got any jobs?
Thanks
Edited by g4ry13 on Friday 25th May 10:29
Edited by g4ry13 on Friday 25th May 10:31
g4ry13 said:
Horse_Apple said:
Suspension holds at last price, not zero.
That's what I said. "If a share is suspended - it's just that; there's no trading taking place so the price can't move." It won't move up or down from the price it was suspended at. Unless you were just clarifying to my round-about answer Just saw you were a broker in your profile too. Just got a few questions as it's something i'm interested in. Do you do it for an institution, how did you get into it and i'm just coming out of university and noticed a lot of institutions want past selling experience so was just deliberating some sort of selling job for a year to get some experience. Or perhaps to just dive straight in.
Oh...and lastly, got any jobs?
Thanks
Edited by g4ry13 on Friday 25th May 10:29
Edited by g4ry13 on Friday 25th May 10:31
Sorry, slightly missread your post.
I'm institutional sales. Been on that side for about 10 years. Started out in private client broking as I screwed up my degree
(the ultimate place for inbreads and 
ups).The market is so diverse that it is very hard to chose when starting out what you want to do. It does depend on what your degree is and your asperations.
Feel free to pm.
Gassing Station | Business | Top of Page | What's New | My Stuff