When a stock price goes down, is it that many people have sold and now have that value in cash OR is it that the market just decides the stock price is now worth less collectively?
In: 103
Most of the trades aren’t direct anymore anyway unless you’re on your own on an independent online broker. If you’re going through a banks platform, they buy and sell large chunks, sometimes at a discount because of the volume, and you’re buying from them rather than say me, when you want 2 shares and I’m selling 2 shares. Unfortunately because of the high volume bank trades, it does affect prices but not by a lot unless you’re looking for volume yourself. They will also look to sell to you at highest available price rather than current market in most cases. If you buy from me, it could be 99 bucks, cheapest is 97 most expensive is 102, and you order through chase, they sell you from their shares at the 102 because it’s available at that price if you want to check.
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