I did not get this. How come there is always someone to buy my shares when I sell them in NYSE stock exchang?

Question

How come the NYSE (the NASDAQ) gurantee for me the buy and sell transaction? How come !!!

Answer 1

This is an excellent question. Essentially, both exchanges are run for profitability and it is essential that there be orderly markets in what are supposed to be marketable securities. If that were not the case, trading volume would be way, way down and so would profits.

On the NYSE, specialists act to smooth the market by buying and selling shares in those stocks where they make a market. For the privilege of making what some would consider sizable profits, the specialists agree to certain market making rules imposed by the NYSE.

There are extremely rare instances of disruption where the number of sellers so swamp the number of buyers, that the price has to "free fall" before enough buyers appear to clear the market. That almost happened on October 20, 1987, but some strange occurrences in the Major Market Index traded in Chicago prevented the market from a meltdown.

Ok that's a bit far off topic, sorry.

To summarize, the NYSE is a business and to increase its profits, it wants orderly, liquid markets. Therefore, the rules imposed by the NYSE on its specialists are there to make certain that you can buy or sell during market hours (as long as there isn't a trading halt).

Answer 2

The NYSE has specialists, while NASDAQ relies on NASD members to make two-sided markets (both a bid and an ask) in the issues they trade.

More often than not, there's an institutional or public investor willing to buy or sell at prices near the last trade, but if not, the specialist is charged with making orderly markets.

When I was a market maker on the floor of the CBOE, we were not just required to make two sided markets in all options in our pit, but the width of those markets coudn't exceed standards set by the exchange.

Answer 3

You mistrust the greenback at 19? Oh, boy. it is not good. the splendid answer for every physique who's quite youthful (decrease than 25 is quite youthful) is to take a place each and every loose penny previous an emergency fund interior the inventory marketplace...say 50% VTI, 25% VWO, and 25% VXUS...until eventually you're 40 5 or so. i'm comfortable with 10% ot 25% in money or bonds if it keeps the the remainder of your money interior the marketplace, yet silver and concern of fiat money? No. you're able to be upbeat, constructive and finding for the deal of a life-time. The "ingredient" it fairly is "your ingredient" that contraptions your tips about fireplace and earns you a first rate living interior the technique. The argument approximately fiat money has some economic and philosophical benefit, yet from the POV of a youthful investor that's comprehensive bs. this is why: did you recognize that each and every thing this large usa has accomplished interior the twentieth century -- becoming the worldwide's wealthiest, maximum helpful usa of all time -- got here on the comparable time somewhat the cost of our forex lost ninety 5% of its fee? It did. The 2010 US greenback is properly worth approximately 5 cents whilst in comparison with the 1914 US greenback. in terms of long term fee, currencies are relative. It concerns what the economic gadget is doing (becoming) no longer somewhat the cost of the forex that's measured in. interior the massive, huge image, silver may well be ok as a speculative investment (no extra beneficial than 10% of your internet wealth) for the subsequent 3 hundred and sixty 5 days or 2, yet I doubt it. what's somewhat particular is that if gold and silver become the final investment of your lifetime, you will in all probability have died very youthful and extremely detrimental. having a wager on the top of the worldwide isn't a robust thought for every physique, besides the indisputable fact that that's an exceedingly undesirable thought for the extra youthful. i'm extra beneficial than two times your age and function extra beneficial than 50% of my money interior the inventory marketplace. If the marketplace crashes back. i'm going to purchase extra.

Answer 4

Because there are companies (NYSE specialists and NASDAQ market makers) whose only job is to buy and sell shares at posted prices.

Answer 5

Well, there is no true guarantee. However, 99% of the time you will be able to sell your shares, no matter how low they've gone. With thousands of investors, the odds are in your favor of finding a buyer. Also, "market makers" (also called, security dealers) have their own inventory to help facilitate smooth stock trading. Many times when you buy and sell, you are actually interacting with this intermediate "market maker" person.