Quora Answer: If I Purchase a Stock at a Buy Price Much Higher Than the Current Price, Have I Set a New Buy Price?

The following is my answer to a Quora question: “If I purchase a stock at a buy price that I have proposed, on purpose, and which is much higher than the current buy price, have I set up a new buy price?”

I assume that you are referring to publicly traded stock on an exchange.  In such a case, unless you are proposing to buy a massive amount of stock at above market rate, you will not be changing the price of the stock.  To do that, you are essentially proposing to move the market, and likely execute some sort of takeover.  That takes a significant amount of money.  Unless it is the example above, regardless of the amount you bid, that transaction still takes place at the prevailing price.  You are not going to move the market, and change the stock price.