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
It’s more that if more people want to buy the stock than sell the stock the buyers need to offer a higher price to tempt more holders to sell to them. While if more people want to sell than buy the sellers need to offer a lower price to tempt more people to buy.
This is why the price of GameStop got so crazy. Before the price was dropping and dropping so people were short selling. Part of short selling is you sell stocks and then have to buy them back later. If the price has gone down you make a profit. But you **have** to buy them back no matter what. So a bunch of people brought stock and then refused to sell. Leaving the shorters having to offer more and more money to break those diamond hands and get the holders to give in and sell.
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