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When shares of stock are successfully sold, is there always an investor somewhere buying what was just sold?


Is one trader's sell always another trader's buy? If 1000 sell orders are executed for XYZ stock in one day, then those 1000 shares are also being bought correct? If that's the case how does the market value become affected if there is equal sides to the supply and the demand for the stock? Why do I hear of selling pressure if all stocks sold are also bought, I must be missing something.

Yes, there are always two sides to every stock transaction. But at any given moment there are actually two different prices, the BID price (the price at which buyers are bidding to BUY), and the ASK or OFFER price (the price at which sellers are offering to SELL). Each of the thousands of transactions in the stock over the course of a single day takes place at either the bid or the ask price. This makes the stock price fluctuate, and when there is a clear preponderance of buyers or sellers the stock price will move in one direction.

For example, let's say XYZ stock's last sale price was 10.00, and the list of bids has 1000 shares bid at 9.99, 500 shares bid at 9.98, 2000 shares bid at 9.97, etc. On the ask we have 3000 shares offered at 10.01, 500 shares offered at 10.02, 1000 shares offered at 10.03, etc.

Now let's say that a market order comes in to sell 1500 shares of stock. That means someone is wanting to sell at the best available bid price. So they will sell 1000 shares at 9.99 and the remaining 500 shares at 9.98. So now we have a last sale of 9.98, 2000 shares bid at 9.97, 1000 shares bid at 9.96, 800 shares bid at 9.95, etc. The price has moved down, and so now some of the people on the offer adjust their ask prices accordingly to 2000 shares offered at 9.99, 500 shares offered at 10.00, 3000 shares offered at 10.01, etc. If sellers continue to come into the market in larger number than buyers, then the bid price will get hit more often than the offer price. This will continue to force the price of the stock lower and lower.

Supply and demand at work!

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Yes, anytime a stock is sold, there is a buyer. If the price is right, there is always a buyer.

But if there are more sellers than buyers, and the buyers are unwilling to pay the previous price, then the sellers are forced to lower the price to sell. That's "selling pressure."

The "market maker" or stock "specialist" maintains a position in the stock so that trading proceeds orderly. If there are very short term imbalances that do not reflect the actual market balance of buyers and sellers, then the market maker may buy or sell to take up the slack.

First, the answer is yes...if you sell, someone else buys. But what if 5000 shares are trying to be sold by 5 different sellers. The buyer my offer less to someone. If the seller takes the offer, the selling price goes down. Other buyers may like the new price and buy up the other 4000 shares.

You need to learn about market makers.The price of a stock may be $10 but the ASK and the BID price maybe $9.5 and $10.5 repectively.You need to also learn about the ASK and BID price for a stock.The market maker is the one who buys the $10 stock from you at $9.5 and then sells it to a buyer at $10.5.This way,the market maker has made $1 for himself.

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