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
The market is more complex than that, it is not a 1:1 trade. You also have companies buying back their own stocks at a premium. You have options traders (sellers and buyers) essentially betting if a stock will rise and fall by a certain amount by a certain date. You have hedge funds buying massive chunks of market segments indiscriminately influencing price by volume. But no a stock value does not instantly drop when it is sold! If you have 5 people that will buy X stock for 25$ and you sell your 1 share when it is trading at 24$… the stock will remain the same at 24$, or possibly rise to 25$ until all 5 buyers get their desired stock. Supply and demand basics.
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