I have recently had a... fairly reasonably priced lesson not to just buy the next stock on my "to buy" list at the face value. Namely, there was a friendly takeover going on so the stock price was fairly fixed at slightly less than the offering price of the over-taking company. My investment was small enough that the transaction fees basically ate up the margin.
Still, I'm wondering: Why were these (legal or natural) people selling at that rate, instead of taking the better price the other company was offering? And who were the people, other than neophytes like myself, that were actively buying the shares?