[dp0622]

I thought there were some types of laws against cornering a market?

You have to buy an awful lot of a company’s stock to have a sizable stake.

I guess it’s fine. What do I know? :)

[semimojo]

I thought there were some types of laws against cornering a market?

You have to buy an awful lot of a company’s stock to have a sizable stake.

Not exactly my area of expertise but there aren't laws restricting how much of the stock of a public company you can buy.

I think there are some reporting requirements if you exceed 10% or so, but that's it.

As a practical matter it's very hard to buy enough this way to gain control, but as an activist investor if you own 10% and team up with other like-minded investors who also hold a material stake you can bring real pressure and probably get a position on the board.

In this case it will depend on how loyal the board is.

[Svartalfiar]

I thought there were some types of laws against cornering a market?

You have to buy an awful lot of a company’s stock to have a sizable stake.

Buying a company's stock does not 'corner the market' in any way, unless you also own all the competition. Which is why when companies like ATT/Time Warner, Disney/every other movie company, stuff like that ends up needing approval. But you as a citizen, buying up a single company, doesn't mean anything really. And yup, gotta buy a lot, and it's difficult if people know you're buying a lot and trying to get 50% or something - their stock in now more 'valuable', so it'll be more expensive. The hard part, I assume, would be finding enough people willing to sell, without going too overboard.