I understand but I don’t. When I “sell” stocks, who am I selling to exactly? The people who are buying in that exact moment? The exchange institution? Same when I’m “buying”.
In: Economics
Basically, when you sell your stock, the institution that holds your stock on your behalf issues a sell-order for said stock and lists it at the price you sold onto the stock exchange; and the person you are “selling” to is going to be whomever’s buy-order you’ve matched with based on price.
The actual buying and selling is all facilitated by brokers and exchanges through order-matching systems and part of the whole hype of these exchanges and market-makers is they ensure liquidity and efficient trades without needing direct interactions. The magic of this is it makes things simple for casual traders and the economy as a whole because of the speed and ease it affords.
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