If there is panic and all investors (including institutional investors) sell all their stocks, who is/are going to buy back the shares? The invesment bankers??
2006-10-09 07:02:39 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
That's why we have institutions: someone has to hold stock. By their charter rules, they can only sell a certain percentage of the total value of the fund. Therefore, they are always "in" the market. The institutions have become "the public."
To take their place, because of technology, we now have hundreds of thousands of Day Traders poised over the Buy/Sell button that causes the wild girations and whipsaws. Almost not any fun anymore.
2006-10-09 07:10:55 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
Stock is a high risk/high return investment vehicle. It's not easy money. So, make sure your own financial situation is solid (no debt other than mortgage, maybe a car) before investing in stocks. Here is the order of things: Checking -> Saving -> Retirement 401K/RSP -> Stock (checking is not an investment vehicle, but everybody has to start with that)
2016-03-28 02:46:37 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Consider that it takes two parties to affect a financial transaction: a BUYER and a SELLER. If a BUYER doesn't exist, then there cannot be a SALE. If all investors are TRYING to sell and there are no BUYERS, there cannot be any SALES; the prices have to drop to encourage buyers to enter the marketand make purchases.
2006-10-09 11:35:45 · answer #3 · answered by Puzzleman 5 · 0⤊ 0⤋
Think of the opportunities.
How low does a stock price drop before someone rushes to buy it? (Think banks, utilities, Wal-Mart, McDonalds)
2006-10-09 07:19:08 · answer #4 · answered by Smilin' Fred 4 · 0⤊ 0⤋