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

Stocks can also rise as theyre being sold. Where more people want to sell a stock than buy, it drops in value but when more want to buy than sell, price will rise. There is always a buyer and a seller in each transaction. Price movement up or down is to equalize demand on both sides of transaction.