Actually institutions can and do buy stocks anothe
Post# of 32649
(Total Views: 378)
Posted On: 06/15/2021 7:58:57 PM
Actually institutions can and do buy stocks another $5. There is nothing really stopping them except maybe their own internal rules that may be set at $1, $2, $3, $5 or no set minimum.
It is true that the likelihood of them buying a stock, all other things being equal would be higher the higher the sp.
More importantly, total market cap would play a more significant factor, but then again, it's up to the institutions.
Where the penny stock come into play is more on the retail side and what brokers can pitch to their clients
Can Mutual Funds Own Stocks Under $5?
https://www.nasdaq.com/articles/can-mutual-fu...2017-11-06
CAN INSTITUTIONS TRADE PENNY STOCKS?
https://pubcoceo.com/2019/01/28/can-instituti...ny-stocks/
"While many small/micro-cap professionals may have heard that institutions can’t trade their stocks. Often, institutions can trade these stocks but the avoid them.
Institutional Investors don’t trade most penny stocks for 4 reasons:
Minimum Market Cap. “Many funds will have a minimum market cap requirement, and even where this is not an official policy, we often find that fund managers draw their own line in the sand.”
Liquidity Concerns. Many fund fear getting stuck in an illiquid holding.
Corporate Governance. Institutional funds are concerned with poor levels of corporate governance and disclosure among microcaps, “a perception reinforced by high profile corporate scandals.”
Materiality. No matter the size of investment, fund managers must perform a similar level of due diligence for each investment. The size of microcaps compared to the size of most institutions means a meaningful investment cannot be made."
When Verb gets above $2 and $100M cap, I believe you will see even more buying and the it's likely to snowball after that.
Then the skinwalkers on the other ranch will shapeshift again
It is true that the likelihood of them buying a stock, all other things being equal would be higher the higher the sp.
More importantly, total market cap would play a more significant factor, but then again, it's up to the institutions.
Where the penny stock come into play is more on the retail side and what brokers can pitch to their clients
Can Mutual Funds Own Stocks Under $5?
https://www.nasdaq.com/articles/can-mutual-fu...2017-11-06
CAN INSTITUTIONS TRADE PENNY STOCKS?
https://pubcoceo.com/2019/01/28/can-instituti...ny-stocks/
"While many small/micro-cap professionals may have heard that institutions can’t trade their stocks. Often, institutions can trade these stocks but the avoid them.
Institutional Investors don’t trade most penny stocks for 4 reasons:
Minimum Market Cap. “Many funds will have a minimum market cap requirement, and even where this is not an official policy, we often find that fund managers draw their own line in the sand.”
Liquidity Concerns. Many fund fear getting stuck in an illiquid holding.
Corporate Governance. Institutional funds are concerned with poor levels of corporate governance and disclosure among microcaps, “a perception reinforced by high profile corporate scandals.”
Materiality. No matter the size of investment, fund managers must perform a similar level of due diligence for each investment. The size of microcaps compared to the size of most institutions means a meaningful investment cannot be made."
When Verb gets above $2 and $100M cap, I believe you will see even more buying and the it's likely to snowball after that.
Then the skinwalkers on the other ranch will shapeshift again
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