Generic share information

[Gollom]

I have some shares in the company I work for and my opinion is that they will be good for increase over time, So much so that I may buy some more given that the general interest rate is so crap! Not a huge amount and not all my savings - just trying to build a pension nest egg!

Of course the trick is to buy at lowest possible. Last year my company promised everybody (over 4000 people) 1000 shares which are awarded in about 2 weeks. Given that a good number will sell the balance of say 700 (after some have been auto-sold to take care of tax liability) would the release on the market of a large number of shares at one time potentially drive the price down so making it a good time to buy?

 

[Howard]

Depends how many shares are in issue totally ?

So they have issued 4 million shares , if the total shares in issue is in the hundreds of millions / billions , then it probably won't affect it too much if 4 mill shars were dumped onto the market in one hit.

However , if there are say 50 million shares in issue , then nearly 10% of them being dumped in one hit could affect it.

I would look up to see how many shares are traded daily and it will give you some idea. If the daily amount is only a few hundred thousand then it might give it a hit , but if its millions it probably won't.