On the chart, volume is the ammount of stock traded on the day right? If so how can you tell how much was sold and how much was bought?
Posted by Bob Frey on :
For every sell there is a buy.
Posted by PCola77 on :
If you're asking how many are traded at bid vs how many traded at ask, I THINK there are screeners that do that for you, but I may be wrong. watching T&S is one way to at least approximate it otherwise.
Posted by T e x on :
I suspect further...I remember quite vividly thinking somewhere one could find *something* that distinguished Joe Retail buys/sells from MM action...
Posted by eld24 on :
Hi,I have a question about mergers. When a private company merges into a public company already trading on an exchange, what happens to the public companies shares ? ex: If you own 10,000 shares of the public companies stock, does that mean after a merger do you still own those shares? Does the private company who is merging use the existing shares of the public company to start selling on the stock market? Any help would be greatly appreciated.
Posted by T e x on :
If you're talking about pennyworld, you're probably talking about a reverse merger, in which case, yes. If you don't sell, you'll still be a stockholder, but probably fewer shares, according to whatever ratio re the reverse split...
Do you have a particular case to use as an example?
Posted by eld24 on :
Thank you for responding. Ex: If a profitable private company wants to go public, can they merge into a already existing clean shell and if they do, do you as a shareholder keep all of your existing shares or, are you bought out by the new company?
Posted by eld24 on :
ALso, can the new company dictate at what price they will start selling
Posted by eld24 on :
Sorry about that post, hit the wrong button. Can the new company set the selling price of the existing shares or does the existing shares start at the closing price of the old company. ex: If ABC company closed at 1.00 can XYZ company who merged into ABC, start selling shares at 3.00. In other words an IPO through a merger.
Posted by T e x on :
in a word, no.
XYZ reverse merges in ABC via a 10:1 reverse split. ABC's OS common stock is now ten times less, but XYZ emerges with 10 x greater pps...if the market like the news, the pps will increase, perhaps going on a nice run. If the market does not like the news, the new pps will fall...maybe as low or even lower than pre-reverse...
Reverse-merger shell plays can be much more lucrative than the typical big-board IPO...
Posted by eld24 on :
Does a reverse split always have to take place when a merger happens?
Posted by T e x on :
no, the "reverse" in reverse merger pertains to the smaller public "shell" acquiring the larger private corporation.
Personally, I think the term is confusing, because it is the private company that will emerge in control. But, it's not like a traditional marger, either... Think of it as a "Hermit Crab" merger...the private company "backs into" the public shell. Usually the former officers split the dough and hidy-ho, silver...
The reverse splits are part and parcel with cleaning up the share structure (or presenting that appearance)... cuz most likely the shell at one point was a bloated POS, pumping machine...
Posted by eld24 on :
Thank you for taking the time to respond to me.
Posted by T e x on :
sure... you're quite welcome
btw, google search will yield lottsa stuff on reverse mergers...
and for the record? There *is* a price-reset mechanism, but it involves so-called "tax-free" reorgs, and they're quite complex, and you hardly ever see them...
Also, another item to research re shell plays is a filing called "15-12g"...
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