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Originally Posted by MTG#10
Question for you real stock gurus, and I realize its a stupid one so dont give me too much shit.
Say one person owns 90% of a stocks shares with only 10% available on the market for trading. Is this a good thing or bad thing for the stock price? I believe it could be bad because it could hinder the stock's movement with so little of it trading on the market. But I'm guessing that's probably wrong since I think its right. Thoughts?
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I don’t remember all the rules but if you have over a certain % of stock you
Have to disclose sales and purchases through the sec. I think there is a delay so it could potentially hamper market movement.
In the aggregate though it would depend on the other 10%. If it has asks and offers out at a higher percentage than other stocks there may not be much difference in the trade than other stocks that are held by buy and hold mutual funds or individual investors.
So the short answer is it depends