How low can a share price go?

[So_Cynical]

Is $0.0010 as low as a share price can go?

Or is $0.0001 as low as a share price can go...im not very good at maths, im assuming the progression would go.

$0.0010
$0.0009
$0.0008
$0.0007

And so on to $0.0001 :dunno:

 

[skc]

Is $0.0010 as low as a share price can go?

Or is $0.0001 as low as a share price can go...im not very good at maths, im assuming the progression would go.

$0.0010
$0.0009
$0.0008
$0.0007

And so on to $0.0001 :dunno:

Lowest share price is 0.1c per share, or $0.001. There's nothing below that.

Unless they consolidate 500-1 then keep falling.

 

[burglar]

Lowest share price is 0.1c per share, or $0.001. There's nothing below that.

Unless they consolidate 500-1 then keep falling.

If the buyers dry up, they can fall to zero. Ask me how I know that?

 

[burglar]

I googled this:

http://stocks.about.com/od/understandingstocks/a/010409bottom.htm

 

[skc]

If the buyers dry up, they can fall to zero. Ask me how I know that?

No... you can't buy a share at zero. There'd simply be no trade.

 

[McLovin]

No... you can't buy a share at zero. There'd simply be no trade.

Yeah, that's right. You can't have a contract without consideration.

 

[crushie]

Funny story. When I noticed there were companies that are sitting on .001 and basically fluctuating between that and .002 I thought I could sit there and buy when the price is .001 and sell when it goes to .002 and keep repeating this process thereby doubling my money every time.

Unfortunately there was not enough volume being traded to do achieve this effect and was not able to fill even a $500 order for shares.

 

[skc]

Funny story. When I noticed there were companies that are sitting on .001 and basically fluctuating between that and .002 I thought I could sit there and buy when the price is .001 and sell when it goes to .002 and keep repeating this process thereby doubling my money every time.

Unfortunately there was not enough volume being traded to do achieve this effect and was not able to fill even a $500 order for shares.

We would all be trillionaires if it was that easy

Realmfunny story. They allowed people to do just that without consideration of volume in a recent stock trading competition. The winner was up something like 80x in 6 weeks.

 

[Julia]

There is a salutary lesson to be had by reading this thread
https://www.aussiestockforums.com/forums/showthread.php?t=13547&highlight=Brisconnections

Many small time investors in the recently floated company Brisconnections could face financial ruin after discovering the shares they purchased are to be paid for over three instalments. Many investors bought into the company when the share price plummeted from $3 to just a mere tenth of a cent believing they were snapping up a bargain. Now, investors face bills running into millions of dollars when the next dollar per share payment is due in April, a liability they claim was never spelled out to them.

The thread heading with the code "BCS" is misleading. As I recall, it was actually BCSCA, the additional two letters there to alert potential buyers that they are not looking at ordinary shares.

 

[young-gun]

There is a salutary lesson to be had by reading this thread
https://www.aussiestockforums.com/forums/showthread.php?t=13547&highlight=Brisconnections



The thread heading with the code "BCS" is misleading. As I recall, it was actually BCSCA, the additional two letters there to alert potential buyers that they are not looking at ordinary shares.

His happened a couple of years ago also. Investors dumped the shares as they new the installments were coming, then the mum n dad investors swoop in to pick up the bargain. Not good. Does anyone know the result of this?

 

[waimate01]

There is a salutary lesson to be had by reading this thread
https://www.aussiestockforums.com/forums/showthread.php?t=13547&highlight=Brisconnections
The thread heading with the code "BCS" is misleading. As I recall, it was actually BCSCA, the additional two letters there to alert potential buyers that they are not looking at ordinary shares.

Well said, Julia. This is essential reading for everyone dabbling in shares. Zero is not the bottom. Likewise with CFDs, futures, shorting and probably all sorts of other things. You can easily bet $100 and lose $1000 if you're not aware of what you're doing (or even if you are).

 

[skc]

His happened a couple of years ago also. Investors dumped the shares as they new the installments were coming, then the mum n dad investors swoop in to pick up the bargain. Not good. Does anyone know the result of this?

They let all the small holders get off without paying the second installment. MQG and Deutche Bank picked up the tap.

Well said, Julia. This is essential reading for everyone dabbling in shares. Zero is not the bottom. Likewise with CFDs, futures, shorting and probably all sorts of other things. You can easily bet $100 and lose $1000 if you're not aware of what you're doing (or even if you are).

Zero is the bottom for share price. The amount you've invested may not be the extent of your total loss. Two different matters.

 

[AussieBoy]

Funny story. When I noticed there were companies that are sitting on .001 and basically fluctuating between that and .002 I thought I could sit there and buy when the price is .001 and sell when it goes to .002 and keep repeating this process thereby doubling my money every time.

Unfortunately there was not enough volume being traded to do achieve this effect and was not able to fill even a $500 order for shares.

That was a mistake I did with one of the first stocks I bought (I think it was my third stock IIRC). Got it at .002 though. And yeah, you could be waiting for months, even years before anything substantial happened.

The point is...why list a stock at .001? It's a bit pointless, isn't it?