HSX Forum

Playing & Trading Strategy

While HSX is a simulation of a virtual stock market, it has had changes over the years that take it away from duplicating exactly the real

Posted by: Paul2k on Mar 26, 16:23 in response to vtwebb's post $2!!

stock exchange.

To wit: when stocks are bought/sold/shorted/covered, it is not based on a finite, defined number of shares of stocks in existance.It is not zero-sum. When you buy shares, you are buying from an "infinite" pool of shares that HSX holds.

If a stock is IPOd with 90 million shares here, that only means that the first 90 million shares bought will be bought at the IPO price. Once the 90 milllion and first share is bought, the price is unfrozen and any subsequent shares consumed will move the price in the appropriate direction.

Your point of $2 of movment based on 130+million shares moved should be amended to $2 of movement based on 40+million shares moved. And to that, we must enlighten you that there are algorithims that HSX uses to determine price volatility of stocks that we are not privy to, and that these algorithms apply "brakes" in certain situations, such as on IPOs or other stocks that have massive amounts of shares exchanged in a very short period of time.





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