If a person owns $2B worth of stock in a company that only has $300M cash on hand. And that person decides to sell all their stock. Where does the rest of the money come from? I can’t imagine people continuing to buy shares that are put on the market so the money has to come from someplace.
In: Economics
You buy and sell stock on a marketplace. So the money comes from the buyer. The companies money is completely separate from the stock market. If the company only has 300m in assets, and it’s valued at 2 billion, that means there’s market sentiment that the company will grow, or they have strong revenue.
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