Cell Therapy News/Articles, page-209

"Buyers 1.01 M units > 650 k units, way higher, yet price seems to either hover around +.58% or -.58%. Is this natural ? If demand is way higher than supply, then why little changes in share price?"


The problem with that thought process is that it fails in its assumption that what you observe as "demand" and "supply" is, in fact, real demand and supply.

Because surely you don't think that all the buying and selling intentions of those that seek to sell or buy a certain stock, are fully signalled to the market in the way you see the buy and selling orders lining up in your screen?

I mean, if you were an institutional investor wanting to buy 100,000 MSB shares (or sell 100,000 shares, for that matter), do you think you'd be more successful executing your order in an optimal manner by:

a) Sticking that order of 100,000 shares in the screen (for the whole world to see)?

or

b) Giving my order to a stockbroker to execute using a computer-driven algorithm which transacts small volumes at a time over the course of a day in such a way as to execute my order at VWAP?