TSXV:ART.H - Post by User
Comment by
Baxter4on Dec 03, 2010 12:51pm
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Post# 17796537
RE: RE: Scotia selling now every 30 seconds
RE: RE: Scotia selling now every 30 secondsThis is my theory.
Scotia has been selling these 500 share blocks fore weeks now. They put the 500 shares up "at market", which means the sale price is at the Bid price. If anyone else buys at the Ask price, the 500 shares will ensure the stock price falls back to the Bid price. This makes it hard for the share price to rise.
In the meantime, any big blocks of shares from retail investors put up for sale out of frustration are snapped up by the 500 block seller, either through Scotia or any other house.
For this plan to work, they must purchase more shares than they sell. The net result is they accumulate without driving up the share price.
You could also be correct in they are getting rid of their shares but are avoiding driving the share price down too much. But then, why do they keep selling 500 share blocks on those days the share price does manage to climb. Wouldn't they want the receive as high a price as possible by simply letting the price rise and then resume selling?