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cthulu2016

(10,960 posts)
Thu May 31, 2012, 01:14 PM May 2012

The stock market can be very orderly

Watching Facebook lose it's daily $5 billion of market cap, it is an ongoing amazement how "everyone" can know a stock is crap yet it doesn't just plummet.

In every single one of these down-tick transaction there is somebody buying. There are enough buyers to match buyers to sellers without the price going into free-fall.

It grinds down, day by day. "At $27.75 Facebook is crap, but at $27.25 I gotta get me some of that... even though we all think it will be even lower tomorrow."

Fascinating process.

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