Company Share Prices

[lacroupade]

Originally Posted by Thomas-the-Terrano2

oh ok,

wondering as they are lower (12p)than we he joined share save scheme(20p)
and there had previously been a rumour that if got down to a certain
price the doors would be closed(9p).

also thinking if prices get low enough as said could have a take over bid but
equally savvy staff might buy up shares?

Sh1t does indeed happen.

I can remember being given $100,000 worth of share options when I joined Dell some years ago. Within six months I'd made $55,000 without lifting a finger.

But within seven months the technology bubble burst and the shares hit the floor and weren't worth lighting the fire with. Such is life

The share price is never a signal for someone to 'shut the doors', because it effectively (but not always accurately) reflects the value of the company, so its the other way round.....company doing badly, bank calls loans in or company can't meet commitments like wages etc.. so they close the doors, at which point shares (which will have already hit the floor) are usually suspended.

But you're right; if you have faith in, or knowledge of, the companies future prospects, a bit of a punt is sometimes in order. Lots of people actually make a living trading in what they call penny shares, i.e. share price is in two figures or even one (i.e. sub-10p), because it doesn't take a lot for relatively quite a bit of movement and therefore profit. But unless you are very well informed it can be a mugs game, even the so-called experts don't always get it right.