eli5 why does stock value drop when stock is sold?

Question

if someone else has to buy your stock when you sell it, isn’t stock being bought at the same time as it being sold?

In: Economics

Answer 1

That’s exactly right. There is no buy without an equal sell. It’s more accurately called “trading”.

But here can certainly be more people trying to buy than there are people trying to sell. But a billion people trying to buy Berkshire stock for $1 doesn’t mean much.

What really matters is the price at which the trade happened.