With virtually no investor interest, a computer program controls the price action of TranSwitch stock. I have been playing with it for the last two days. Say the Bid is .405, I submit a bid for .406 and presto in less than a minute, the Bid is .407. I don't know how anyone makes much money trading a stock in increments of a tenth of a cent or less on non existent volume.
Thank my neighbor who owns a high frequency trading company out of texas. About 80% of market trades are from hft outfits. Trades in nanoseconds. Basically sweeps the entire market regardless of anything except price movements, not even volume. At the end of the day(actually a 24 hour system) he trades over 2 billion dollars worth of stock. Average holding duration is less than a second. Much like raking the ocean floor for fish, a lot of #$%$ gets hauled up. Really has changed the nature of investments. You place a bid, it tracks the sale, and then bids an increment higher with the expectation the next bid will be higher. When that higher bid comes in, it then sells out. Its an iterative program that moves stock prices up and down without regard to fundamentals nor really to underlying demand.