What caused this drop?
I'm going to guess that you found this because of a stock screener.  This company went through a 1:20 reverse split on June 30, so every 20 shares outstanding became a single share.  Where before you had 20 shares worth $100 you now have 1 share worth $100, the value of the company doesn't change because of a split.  This company was never trading for $30+ per share.  Reverse splits are typical of a floundering company trading on an exchange that has a minimum share price requirement.  While reverse splits don't change the value of the company, just the number of shares outstanding and the price per share, no healthy company performs a reverse split.  Reverse splits are generally a massive signal to jump ship... The company seems to be trading for $1 right now, why the value fell from a pre-split $1.65 ($33/20) to $1 is anyone's guess; how the company ever got to $1.65 is also anyone's guess. But looking at the most recent 10-Q there are numerous causes for concern:  Note 2. Capital Stock On March 6, 2017, the Company issued as compensation for services provided a total of 650,000 common shares with a fair value of $390,000 to a third party. The fair value of the shares was based on the price quoted on the OTC pink sheets on the grant date. this indicates a share price of $0.60 ($390,000/650,000) as of 3/6/2017, just to reinforce that the google price chart doesn't show the true past but a past adjusted for the split Results of Operations The three months ended March 31, 2017 compared to the three months ended March 31, 2016 For the three months ended March 31, 2017 compared to the three months ended March 31, 2016, total revenues were $0 and $0, respectively, and net losses from operations were $414,663 and $26,260, respectively. The net losses were attributable to costs attributable to operating as a public company, in particular, common stock with a valuation of $390,000 that was issued to an investor relations firm in the first quarter of 2017. Going Concern As of March 31, 2017, there is substantial doubt regarding our ability to continue as a going concern as we have not generated sufficient cash flow to fund our proposed business. We have suffered recurring losses from operations since our inception. In addition, we have yet to generate an internal cash flow from our business operations or successfully raised the financing required to develop our proposed business. As a result of these and other factors, our independent auditor has expressed substantial doubt about our ability to continue as a going concern.    Liquidity and Capital Resources We had no cash as of the date of March 31, 2017. Additionally, since there is no balance sheet in the last 10-Q (another bad sign), the last annual report 10-K has this balance sheet: So the company: So why did the stock value plummet? It's anyones' guess but there is no shortage of ways to justify it.   In fact, it's reasonable to ask how is this company still worth $3mm ($1 * 3mm shares outstanding)... I do not fully understand the transactions involved, but it appears that there was a reverse stock split (20:1) and some legal status change as well on June 29th. This seems to be the cause for the change in valuation of the stock as the dates match the drop. https://www.otcmarkets.com/stock/RMSLD/filings
Ex-Dividend Price Behavior of Common Stocks would be a study from the Federal Reserve Bank of Minneapolis and University of Minnesota if you want a source for some data. Abstract This study examines common stock prices around ex-dividend dates. Such   price data usually contain a mixture of observations - some with and   some without arbitrageurs and/or dividend capturers active. Our theory   predicts such mixing will result in a nonlinear relation between   percentage price drop and dividend yield - not the commonly assumed   linear relation. This prediction and another important prediction of   theory are supported empirically. In a variety of tests, marginal   price drop is not significantly different from the dividend amount.   Thus, over the last several decades, one-for-one marginal price drop   have been an excellent (average) rule of thumb. Aside from the market implications Victor and JB King mention, another possible reason is the dividends they pay. Usually, the dividends a company pays are dependent on the profit the company made. if a company makes less profit, the dividends turn out smaller. This might incite unrest among the shareholders, because this means that they get paid less dividends, which makes that share more likely to be sold, and thus for the price to fall. No...it is not.  The markets are never certain. The price of oil often fluctuates and you have to take into account inflation. See the year 1980 here.  http://inflationdata.com/inflation/inflation_rate/historical_oil_prices_table.asp  At this moment, many analysts concur that the price has dropped because demand is not high.    It is not because of a Global Financial Crisis.  Political Trouble in Europe and current low demand and high stockpiles in the USA....yes. It will be most interesting to see what happens as Oil starts to get traded more in more in other currencies.  In the controlled demolition that was the WTC, you could see the disbelief in peoples faces as the top started to topple and the first few floors pancaked, then the fear as they realized the whole thing was coming down and they started to run.  Feels the same, a controlled demolition, 9.8 m/s^2 all the way down. Free fall Unless you are buying millions of dollars worth of a stock at a time, your transaction is a drop in the bucket, unlikely to have any noticable effect on the stock price. As Ian says, it's more likely that you are just remembering the times when the price dropped after you bought. If you keep careful track, I suspect you will find that the price goes up more often than it goes down, or at least, that the stocks you buy go up as often as the average stock on the market goes up. If you actually kept records and found that's not true, the most likely explanation is bad luck. Or that someone has placed a voodoo curse on you. I suppose one could imagine other scenarios. Like, if you regularly buy stock based on recommendations by well-known market pundits, you could expect to see a temporary increase in price as thousands or millions of people who hear this recommendation rush to buy, and then a few days or weeks later people move on to the next recommendation, the market setttles down, and the price reverts to a more normal level. In that case, if you're on the tail end of the buying rush, you could end up paying a premium. I'm just speculating here, I haven't done a study to find if this actually happens, but it sounds plausible to me. "The stock should fall by approximately the amount of the dividend as that is what is paid out. If you have a stock trading at $10/share and it pays a $1/share dividend, the price should drop to $9 as what was trading before the dividend was paid would be both the dividend and the stock itself. If the person bought just for the dividend then it would likely be neutral as there isn't anything extra to be gained. Consider if this wasn't the case. Wouldn't one be able to buy a stock a few days before the dividend and sell just after for a nice profit? That doesn't make sense and is the reason for the drop in price. Similarly, if a stock has a split or spin-off there may be changes in the price to reflect that adjustment in value of the company. If I give you 2 nickels for a dime, the overall value is still 10 cents though this would be 2 coins instead of one. Some charts may show a ""Dividend adjusted"" price to factor out these transactions so be careful of what prices are quoted." You're describing a dynamic that may contribute to lower house prices. It doesn't however speak to how those prices got so lofty, so untethered from wages and the broader economy to begin with and why the losses from the fall were amplified so many times over.  That's a story you can't tell without working through the systemic fraud. It doesn't sound fishy at all to me. Just seems like you may be dealing with a company that has relatively light trading volume to begin with, meaning that small trades could easily make the price drop 8% (which isn't much if you're talking about a stocks in the $5 or less range. If someone sells at the bid and the bid happens to be 8% lower than the current price, that bid is now the price, hence the drop. The bid moving up afterward, just means that someone is now willing to place a higher order than what the last trade was, to try to get in. It is called the Monday Effect or the Weekend Effect. There are a number of similar theories including the October Effect and January Effect. It's all pretty much bunk. If there were any truth to traders would be all over it and the resulting market forces would wipe it out. Personally, I think all technical analysis has very little value other than to fuel conversations at dinner parties about investments. You might also consider reading about Market efficiency to see further discussion about why technical approaches like this might, but probably don't work. Thanks for the cross-post.  I wrote this in response to a lot of questions on Quora, asking about Segwit and where the market was going. There are a ton of factors that could affect the market, but if I had to bet on the most likely outcome, this would be it. I hate attributing an event like this to a single cause.  That implies that the market is an orderly system where everything operates smoothly.  I prefer to see it as much chaotic. When I see a drop like that happen, I'd say that there were a lot of sellers of stocks and all the buyers were bidding less and less for those few minutes.  Perhaps the catalyst for that was a typo or a strange order.  But in the end all the participants in the market responded by bidding down stocks, not just one person.  It takes sides to complete a trade. I know my model is a bit simplistic...  I'd be happy if someone corrected me :-) The root cause can be said to always be a crisis in confidence.  It may be due to a very real event.  However, confidence is what pushes the markets up and worries are what bring them down. [Here's](http://www.macrotrends.net/1369/crude-oil-price-history-chart) what I found. I think the gist of it is that because we've invested so heavily in pumping domestic oil in North America, it's lowering worldwide demand. Countries that rely really heavily on oil revenues, like Russia, Venezuela, Libya, Saudi etc., suffer when oil prices drop. Typically this isn't a random order- having a small volume just means it's not showing on the chart, but it is a vlid price point. Same thing would've happened if it would've been a very large order that shows on the chart. Consider also that this could have been the first one of many transactions that go far below your stop point - would you not have wanted it to be executed then, at this time, as it did? Would you expect the system to look into future and decide that this is a one time dip, and not sell; versus it is a crash, and sell? Either way, the system cannot look in the future, so it has no way to know if a crash is coming, or if it was a short dip; therefore the instrcutions are executed as given - sell if any transfer happens below the limit. To avoid that (or at least reduce the chance for it), you can either leave more distance (and risk a higher loss when it crashes), or trade higher volumes, so the short small dip won't execute your order; also, very liquid stocks will not show such small transaction dips. "Well, as they state ""the decreases in median net worth appear to have been driven most strongly by a broad collapse in house prices"".  When you're caught holding an overvalued asset, was your previous worth really a true estimate? A better headline might be ""median family wealth corrected to true value after previous accounting errors found."""