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 investors sell stock, they aren’t selling it to the company, they’re selling it to other investors. Just as when you bought the stock, some other investor sold it to you (unless you bought at the IPO).
Latest Answers