stock vs company value

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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

17 Answers

Anonymous 0 Comments

outside of the IPO; stocks are traded (bought and sold) between individuals; not the company.

if I sold Nvidia stock; its not nvidia who buys it…..but some other investor or fund manager.

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