Let's say that a company entered a stock market selling 1000 shares $1K each in total $1M.
What would need to happen in order to double the price of a share? Are both scenarios valid?
Additional $1M entered the market, for example there could be 1000 transactions $2K each: Stock price: $2K Market cap: $2M Volume: $2M Cash in the market: $2M
A single $2K transaction is sufficient: Stock price: $2K (last transaction) Market cap: $2M Volume: $2K Cash in the market: $1,001,000
In 2nd scenario $999,000 would be created out of thin air, which doesn't seem right. But maybe this is how a stock exchange works? So if there is a crash, not necessarily real value is lost?
Stock: Dave Inc (DAVE) Date: 21 Jan 2022
There was volume of 3M shares, $10 per share, in total volume of $30M. Stock price increased by 30%. Market cap is $3.5B. That means that $1B was "created" out of $30M? Is that right?