I was just looking at the stock prices of different companies and I checked out blockbuster for fun. The stock is worth 0.01 but it was once worth 0.00. If a stock is free doesn't that mean i can buy as many shares as i like. Then once it goes back to 0.01, i could make alot?
No you cannot buy as many shares as you like. You can buy as many shares as someone is willing to sell to you. You can sell as many shares as someone is willing to buy from you.
Stock quotes are ordinarily the price of the most recent trade. Just because someone was willing to buy for 0.01, doesn't mean somebody will be willing to buy at that price in the future.
0.00 could mean that people traded away their shares for nothing, like Donald Trump famously did with his companies to claim a billion-dollar tax loss. That "trade" wouldn't occur on a public exchange. Or it might not represent a real trade – it could mean that nobody is trading that stock. It is unlikely that you could find anyone offering Blockbuster shares.
On theory, yes.
But there are several considerations
1- the company ceased operations, so at 0.00, the shares are technically overvalued.
2- there is a minimum brokers fee that will cost more than 0.01 per share.
3- the 0.01 valuation means nothing. It also went to 0.03 earlier in 2016.
4- Since it ceased operations, most brokers will not sell it.
If you read the business page, you will see that the company is in bankruptcy, and when it is complete, its market capitalization will become $0.00
I suggest you buy all you can buy
You try that and get back to us….