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
When you sell a stock, you are almost never selling it back to the company that issued it. You are selling it to other people like yourself or various investment firms.
Once a company issues a stock, other than if they issue dividends, that company has nothing to do with the stock, most of the time. They issued stocks in order to raise money. All of the sales after that point are on a secondary market that has nothing to do with the issuing company.
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