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Selling stocks and shares?!?

Selling stocks and shares?!?

Selling stocks and shares?!?
When selling stocks, do you sell it back to the company or to another investor?
I've heard of the greater fool theory which indicates to me that you would sell to another investor...

Any answer appreciated.

Best Answer

Usually to another investor. Occasionally, companies will buy back their own stock, but not very often.

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yes you always sell to another investor. That is why the price is so volatile. You can only get what someone else is willing to pay. So when there is bad news about the economy folks are afraid to buy stock sot the price goes down. However remember that most stock is bought and sold by large investors and managers of mutual funds, banks, retirement funds etc.

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hi there!!

you sell it back to other investors and not to the company. and thats why we see many changes in the prices, very fluctuating, quite volatile in nature..

but thats the stockmarket...buying and selling with investors..

great luck ahead...enjoy

Source(s):

gnutrade: Traders Discussion

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You sell it to whomever is buying. There are stocks that trade in large volumes and there are stocks that trade in low volumes. You sell to whomever is buying. A computer program, or individuals, mutual funds, etc. This is what i think.

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Sometimes the company buys it back. But more usually you sell shares in the market and they are bought, directly or indirectly by other investors. The stock market is a "secondary" market,

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You sell it to another buyer. They may be an investor or a trader.

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