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
If I sell the stock, the money comes from whoever buys the stock. Not the company.
If no one buys it, I try to sell it at a lower price (aka the stock price is down)
It only comes from the company if *the company itself* is buying the stock, which is referred to as a buyback.
Then whoever bought the stock from me now owns the overvalued stock at their risk.
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