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Is there a limit in how much you can invest in a company? |
- Lets say I have $25,000,000 , and I want to invest all of it (DON'TT ASK WHY) in a company that has stocks for $2,00 a share. Can I buy that many stocks? And if I do buy that many shares, will the price of the stock skyrocket? Don't use fancy investment lingo. Thanks. As you accumulate your 25million dollars worth of shares, you will very soon drive the price up astronomically, you will end up paying hundreds of dollars for a share that is still only worth $2. you can, but stock brokers advice you take into consideration how big the company can actually get. You can if you want. How do you think some companies buy huge portions of others and come to be majority share holders? You can buy as many shares as are available to investors. The share price might fluctuate, but I don't think it will really matter. People buy thousands of dollars, millions of dollars into one company all the time, but usually what makes the stock move in the market is an announcement of some kind that shakes up the investor's confidence in the company (whether it be good or bad) You are allowed to invest as much as you want, but if you are going to acquire more than 5 percent of a company, you essentially have to declare yourself, to file papers with the SEC. A massive infusion by one invester will ordinarily attract other investers, and thus raise the price of the stock, but there are about a million exceptions to that. |
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