H - Your comments are gratefully noted, I have inserted the words I missed to make it right:
"Market Cap is set by the multiplication of the price of the latest shares bought/sold X all of the shares in issue", which is precisely what you say - Cheers! The SP used is derived from the middle price taking account of the actual activity (Buy & Sell).
Market Makers are driven by willing buyers and sellers of shares and derivatives and the volumes of stock and prices of these that they desire to trade at - The tail does not wag the dog, all they can do is compete on price for the business - just like track side bookies at the Races, I think.
Thanks for the good wishes and indeed they are heartily reciprocated.
I have to say that all your previous posts have made for good reading --however , the last one below does not make any sense at all !! --- your Market cap. calculation is entirely incorrect ( market cap. is SP x shares in issue not Shares bought and sold x shares in issue ?? ) and the SP is never determined by the " herd " as you put it but by Market Makers and proper market forces ----you seem to have lost your way a little on your last post , but i echo your sentiment on Investor timing , especially for us , the smaller Private Investor !! ---- but GL tho'---
You OCDs can do all the logical bean counting you like, but as Market Cap is set by the multiplication of the latest shares bought/sold X all of the shares in issue, There is therefore always going to be a disconnect, sometimes massive, with real value, as the price in TSCO is always determined by "The Herd" which reacts to News, Confidence and desire to make a fast buck (in some cases). It is for us to calculate the gap and place our bets/buys/sells accordingly. Profit and Loss for the Investor is always determined by timing and less by calculation.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.