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I'm fairly new to this and recently I bought a stock for a couple cents a share and recently when I went to go buy more their asking price went to about 2,000 a share? Later on during the week I went back to check it and it dropped back down to a couple cents why I companies do that? Is that them valuing themselves?

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    What country/market? The company doesn't make the order book the market does. – quid Sep 11 '17 at 22:11
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    The ask price is determined by the currently active sell orders in the market. It's possible the ask price your order filled was the only one that was less than 2,000. Not uncommon for illiquid stocks that are the target of "pump-and-dump" schemes. – D Stanley Sep 11 '17 at 22:14
  • In the U.S market – David Orozoc Sep 12 '17 at 3:06
  • And well I do try to avoid the scam companies but it was ERBB they didn't really seem like a scam I hope not – David Orozoc Sep 12 '17 at 3:08
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    marketwatch.com/story/… – RedGrittyBrick Sep 12 '17 at 8:13
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As folks have explained in the comments:

  1. The bid/ask prices are a natural consequence of market supply and demand; they are not determined by the company itself.
  2. So-called "penny stocks" are particularly prone to sharp rises and falls in price because they are illiquid -- i.e. there are few people trading them. So, for example, the next seller in line after Alice, who's offering to sell at $0.03 per share, might be Bob, who's unrealistically offering to sell at $2000.00 per share. If someone buys all of Alice's shares, then suddenly the market asking price is $2000.
  3. Penny stocks are also prone to pump-and-dump fraud schemes. These are sometimes even perpetrated by the companies themselves (or their agents) specifically because of (1): there's no legal way to control a stock price, so folks resort to illegal means instead.

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