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
> And that person decides to sell all their stock. Where does the rest of the money come from?
The person who buys the stock. If you sell the stock, someone has to purchase it from you. It’s their money paying for it.
Sometimes companies do buybacks of their stock, but that’s less common than simply selling the stock to someone else.
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