That is why you see the huge spike in volume that is almost triple than usual today. A lot of weak hand sold, but also a lot of smart people bought in.
You are right. It should have been 50%.
mom and pop investors were not the sellers of 750 million dollars of stock
But who was buying ? Shorts would'nt cover if they think the news was so bad.& AIG is fully shorted ?
This stock has traded between 6 bucks and 55 bucks and it's the same company. So daily or monthly movements are not relevant. There is no possible way that the common shares can be worth anything in the end!
Trading 101 - when volume spikes and the price goes lower, selling is occurring.