Knowing that share prices are determined by the forces of supply and demand, other factors can also play a role in this but lets consider the fact that prices are only based on supply and demand.In this case is it possible for someone to buy a big amount of shares thus making the price rise and then sell them to make a profit ? If so how can the impact on the price be calculated depending on the amount of shares bought ?
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1$\begingroup$ It might be your while worth thinking through what it would mean if things worked as you describe. $\endgroup$– 410 goneMay 23, 2015 at 16:55
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$\begingroup$ So share prices do not depend on tge current demand/supply ? I am asking this question because I need explanations $\endgroup$– Amr El AswarMay 23, 2015 at 19:57
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$\begingroup$ @EnergyNumbers and when I am talking about buying big quantities I mean quantities that can actually have an effect on the price... $\endgroup$– Amr El AswarMay 23, 2015 at 20:01
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What you're failing to consider here is that in buying a large amount of shares, the buyer also makes the price high for himself. And if he sells a large amount of shares at the same time, he's likely to lower the price of the actions while selling them. Poor boy has no chance.
