The price is related not how many buy it but to what they think it's worth. When stock sells, it is either to someone who thinks it's worth more or worth less, and the price moves accordingly. Why they sell makes the difference. If people are buying because they thing it is worth more, they drive the price up. If they won't buy at the current price, the price will drop until it's seen as a bargain, so the price goes down.
For every seller there is a buyer, so the number of shares is usually the same. It is the perception of value or change that drives trading. The number of people who own stock makes no difference.
More people investing like in PLUG? Where it went from 10 to 6 in two days?
http://finance.yahoo.com/echarts?s=PLUG+...
More people investing in a stock gives that stock more liquidity, but not necessarily an increase or decrease in price.
Econ 101: In all free markets, price is determined by supply and demand.
If there are more buyers than sellers, more demand than supply, then price goes up. If there are more sellers than buyers, where supply is greater than demand, price goes down. The number of people investing doesn't change price, but rather the relationship between buyers and sellers.
When there is more interest generated in a stock by some event or whatever, like a stock split or a CEO sneezes, more interested people can cause a short-term fluctuation, but this short-term interest has no long-term effect on price.
If Apple comes out with a game-changing new product and generates a ton of new interest, then naturally the price may go higher from a slew of new buyers, but again, it is the relationship of greater number of buyers than sellers that drives price.
It's an auction, not a fire sale. You pay up for what you get in the markets. You play with winners and you win with winners. Cut corners in business and you lose. Who are the next winners? is really the question.
Generally you could expect it to go up, but not necessarily. If there are lots of buyers and they continue to offer the same price, then the price would remain the same. However, given the law of supply and demand, generally the more buyers, the higher the price they will bid.
This are the general rules:
1.the lower the demand the lower the price.
2. the higher the demand the higher the price.
so rule 2 applies
My responses are limited, you must ask the right questions.
