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
People don’t buy and sell stock to the company, except in certain specific cases. They sell shares in the market to whoever is willing to pay the highest price for them.
You can go buy 100 shares of whatever company right now. You’ll be buying them from somebody who is selling, and his money will come from you.
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