Why is there always someone who buys my share when I sell it? How don't businesses run out of shares? Why can't a business just buy their own shares to make themselves more valuable?
>>62562994>Why can't a business just buy their own shares to make themselves more valuable?Uhhhhhhhh lol
>>62562994stocks arent real
>>62562994>What is a stock buyback
>>62563038free money, so why doesn't everyone do it?=
>>62562994Algos and HFT they account for 60-70% of all US equity buying/selling.
>>62562994>Why can't a business just buy their own shares to make themselves more valuable?My brother in Christ...
>>62562994Answer one: because there is a sucker born every minuteAnswer number two: Corporations can issue new shares. They must jump through the SEC registration hoops, but essentially the only obstacle is resistance from existing shareholders who don't want their equity diluted. They can then use the new shares like cash to buy other companies. Answer three: They can and do buy their own shares, but they must pay for them out of the corporate profits (or with borrowed money).
idk op was thinking the same thing. some nigger always cancels out my buy immediately on every single asset I have ever bought. what is wrong with people? perhaps the value would go up if these shadow forces would stop selling.
>>62562994>Why is there always someone who buys my share when I sell it? if you sold something, there is someone who bought it. it's impossible to sell something without a buyer. question makes no sense.>How don't businesses run out of shares? it's called illiquidity. some small businesses do have that problem.>Why can't a business just buy their own shares to make themselves more valuable?they can, it's called a stock buy back. "more valuable" is relative. if they think their stock is undervalued, they do a buy back, and from their perspective they are getting a good deal. only in hindsight can it be determined if they made themselves "more valuable". (and of course buy backs are also used as an alternative to dividends, not talking about that.)
>>62563456not true at all you idiotever heard of an AMM? It's a liquidity pool, there doesn't need to be another person selling.
>>62563465yeah, i gave the lie for children. but there is always a counterparty.
>>62562994>Why is there always someone who buys my share when I sell it?There’s companies called market makers who provide liquidity to the entire market. They buy and sell stocks to everyone at the public price.>How don't businesses run out of shares?A share is a fraction of ownership. As long as fractions are infinitely divisible there’s always going to be shares available to sell.>Why can't a business just buy their own shares to make themselves more valuable?This is called a share buyback and it’s the source of all the stock markets growth since 2010. Technically, it shouldn’t make the shares more valuable, since the value of the shares no longer on the market is exactly equal to the amount the company spent off its balance sheet. But in practice it’s a pretty substantial tailwind to stocks, especially tech stocks.
>>62562994>Why can't a business just buy their own shares to make themselves more valuable?But if they're buying their own shares with their own money then they aren't getting any richer? It would be like giving money from your right hand to your left hand and pretending you're richer?
>>62562994>Why is there always someone who buys my share when I sell it?There are a shit ton of algos and institutions that spam bids and asks 24/7. So when you market sell something that doesn't have absolutely dogshit liquidity then the order should go through almost immediately.
>>62562994here's all anyone needs to know about stocks. they can be diluted and rugged to 0 at almost anytime. its just not worth the risk anymore esp in this economy and with interest rates prob going to 10% in the US
