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Who buys the stock when you sell it


Does a broker have to buy a stock to sell it?

For a transaction to occur, there must be a buyer on one side and a seller on the other; even when prices are falling, there are buyers of the falling securities. A broker does not have to buy the stock you are trying to sell; a broker is there to act as an agent on behalf of the seller, finding someone to make the purchase.

Why would someone want to buy the stock you are selling?

It can be difficult to understand why someone else would want to buy the stock you are selling. The movement of share prices up and down is the mechanism that allows anyone who wants to buy or sell shares to be able to find a match on the other side of the trade.

Can a stock have no buyers?

Can a Stock Have No Buyers? A broker is not required to buy from you if you want to sell shares and there is no one willing to buy. A broker won't lose money when a stock goes down in a bear market because the broker is usually nothing more than an agent acting on the seller's behalf when they find somebody else who wants to buy the shares.




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