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I did those calculations a while ago, trying to figure out a formula. Bottom line, it varies and is a potential artificiality of the game.

Posted by: PVL Admin (a.k.a Rocket123) on Apr 02, 18:41 in response to OUsooner90's post Can anyone explain this to me? I started tracking movie...

What I figure is that variables exist with respect to the number of shares for/against/held total and the speed/rate at which shares are purchased/sold/shorted.  I also heard that there was "secret sauce" in the mix that puts breaks on if too many shares are being traded too quickly. 

So, if 20 million shares are outstanding in two different stocks of the same value, and one stock trades at 100 000 shares every ten minutes, but the other trades at a rate of 100 000 shares per 30 seconds, AND the same number of shares are traded in the day, then the value of the stocks will undoubtedly be different at the end.

For the record, I DO NOT KNOW for sure, but my monitoring and earlier calculations suggested some sort of controls to volatility are at least partially the cause for the variances.

Ultimately, don't worry about things you cannot control.  I hope this eases your mind to some degree.  If you are losing sleep over it, you might as well take advantage and reset trade  ;)





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