I've noticed that for stocks that have low volume and/or market cap, a single trade can send the stock's price plummeting down or skyrocketing up. I noticed that they also have a huge bid/ask price. Doesn't it require a lot of people trading to move the stock prices up or down? If a stock has very low volume, shouldn't the prices move very little, since not a lot of money is being traded, therefore not affecting demand as much? Is it because the spread is larger? Why do prices move so much when volume and liquidity is low?
Submitted June 02, 2017 at 07:16PM by LAN_of_the_free http://ift.tt/2ruvxO4
