Bid support is a trick meant to shore up a company's stock price. In the maneuver, traders put in a bunch of bids for a stock, making it look like there is a large amount of buying interest. A company's share price is derived from a series of bids and asks, bids being inquiries to buy a stock and asks being orders to sell (See: Bid and Asked)).
The process is meant to build a floor for the company's share price and draw in actual buying interest by making it look like a sizable bid interest exists. Hopefully (from the conspirators' point of view) other traders will jump on the stock in the hope of getting in ahead of an increase in price. Bid support is considered a form of market manipulation.
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Finance: What is Trading Volume?29 Views
finance a la shmoop what is training volume training volume with a lot of
volume and this is trading with okay yeah yeah you get the idea [Man shouting into megaphone]
volume here is not about number 11 on the dial but rather about the number of [Person turning up volume dial]
shares trading back and forth on a given day week hour a month and generally
speaking higher levels of volume are a relatively bullish sign for the market [Water pouring]
on all else being equal that is optimistic investors are putting money
into the system buying up stocks and contributing liquidity like they are [Investor money transfer to stock market]
seeking risk they're hopeful they're optimistic lots of volume high liquidity
low volume low liquidity and high is good
Inessa not just a california proposition 64 thing high volumes are attractive to [People protesting for cannabis]
large institutional professional traders and investors because there remains the
perception that if they want to sell a given position well then with high
volumes they can get out quickly so they feel less hesitation about getting in
quickly okay good just checking [Man shouting into megaphone]
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