Who Buys My Stocks When I Sell Them?

Question

When I sell stocks, who buys them? Also, if I sell when it's positive, where does that money come from? Lastly, Is market cap equal to the volume multiplied by the price of the stock?

Kinda basic, stupid questions, but I can't find answers anywhere and they keep me awake at night lol.

Answer 1

The market queues up orders to sell and orders to buy. If there is a match for a given stock, then a trade takes place. The clearinghouse sorts out transactions each day and the respective brokerages then assign payouts from the accounts where a buy is made, or pending receipts from accounts where a sell is made. There is a settlement date, usually three business days, when the brokerage then frees cash from their accounts for the sellers and frees stocks to the accounts of buyers. In some cases, I've seen this myself, the trade appears almost simultaneously and is not reflected on the trade ticker. That is when my brokerage simply changes an account number for a given list of people who own their stack of stocks in that issue. Sometimes the brokerage buys for their own account, either way, the broker pays you credit for money when you sell and pays itself credit for your money when you buy. Then the broker pays the clearinghouse for its balance. Scottrade customers bought 100,000 shares of XYZ and sold 120,000 shares, so a balance is due for 20,000 shares.

Beyond that, it doesn't matter. You may have sold something that I bought, or bought something that I sold, we never really know, and it never really matters.

Answer 2

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Answer 3

There is a place called the stock exchange where the main stock brokers of the country have a place at the table. This is where the stocks you wish to sell or want to buy are traded and it is through these people the trades are generated. In effect, buyers are matched with sellers., prices are established and accepted and trades are made. If I buy shares I must come up with the money within 5 working days and if I sell the money will appear in my account within 5 working days.

Answer 4

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RE:
Who Buys My Stocks When I Sell Them?
When I sell stocks, who buys them? Also, if I sell when it's positive, where does that money come from? Lastly, Is market cap equal to the volume multiplied by the price of the stock?

Kinda basic, stupid questions, but I can't find answers anywhere and they keep me awake at night lol.

Answer 5

Easy answer is, someone like yourself wants to buy or sell. If you are selling stocks/shares, and someone else want them, and feel the going price or what you are asking is a fare deal they will buy.
This is usually done through a share broker. There are many reason why the price of shares change, creating profits and losses!
If you want to learn more a site I use is, http://www.asx.com.au. they have free on-line classes. There is many others.

Answer 6

1. The broker sells them on the open market.
2. Question unclear - if you mean when you sell for a capital gain, price is a function of supply and demand.
3. Market cap = Total # outstanding shares of stock x price per share.

Answer 7

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Answer 8

A dealer buys them. A broker sold them for you. Thats why its called a broker dealer. The money comes from the dealer who makes a market in the stock. They post a bid price and an ask price. The bid price is what the dealer will buy it from you for. And the ask price is what they will sell it to you for. They make a profit on the difference between the bid and ask prices.

Answer 9

Investors looking to buy that stock buys them from you. Market capitalization is the share price times the number of shares outstanding of a public company. ex. Walmart- $50 a share x 100 shares= market capitalization of $5,000. (they're worth a lot more, just an example) They're not stupid questions.

Answer 10

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