stock jumps 50% in one day

[bronto18]

A stock jumps 50% in one day. There are no news around it, nothing. Why does this happen?

[trent]

There are several possible reasons for such a jump. There might be a good news that has leaked through employee of the company for example, before the news is made official by the company. Maybe another company made a bid to acquire the company (M&A talks). Another reason is lack of liquidity. If the company is thinly traded a trade for a large block of shares, might cause the price to go up even higher than 50%.

[bullish]

Or the stock may have been severely oversold in the previous days.

[Canadian]

I usually avoid stocks that have wild gyrations, however there is nothing stable in today's markets. If a stock like GE can go from around $40 to less than $13 for a year, then there is something very wrong with the markets.