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
In practice, dumping $2B worth of shares all at once tends to crash the price, so it’s worth less as a bulk sale. It is only worth $2B if somebody else, or a lot of somebodies, pays up for it. One of the somebodies may be the company itself but not usually.
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