The question is, are some offers to sell genuine, or are they there to deter buyers?
IMO, large offers to sell that move constantly so that they do not actually transact are a form of price manipulation that should be stamped out. Clearly, there is not real intention to sell, but to alter the perceive buy/sell depth and as such manipulate prices.
As a fundamental investor, I ignore market depth anyway. With these sorts of practices rife, it makes no sense to trade on the basis of buy/sell depth, which can so easily be loaded.
But, clearly, these practices do have an effect on price, which is why they are so widespread.
Buy undervalued companies. Wait. The price will sort itself out by-and-by...
Yaq
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