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Home | Getting Started | Personal Finance | Q & A | Sample Portfolio | Glossary | About Us |
| Date: Wednesday 17th 2010f March 2010 01:32:47 AM |
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Q & A - Buying And Selling Stocks - 03/24/2009 |
| By: Hari Wibowo |
| Name: sg |
| Website: N/A |
| Date posted: Tue, March 24, 2009 |
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Question:
I'm new to trading/investing. i can understand buying stocks, i think, but i
don't understand the selling. when i buy say, 900 shares of a certain
company, and for whatever reason , decide to sell them, who buys them? who
finds the buyer? if i buy the shares at 1.90 a share, and a month, 2 months, whatever , they are 3.90 a share, how much do i sell them for? |
| Answer: |
| I presume that this question is related to the mechanism of buying and selling stocks. For every transaction, there will always be both parties, buyer and seller. When you are selling your shares at $ 3.90 per share, for example, there is also one or more buyers willing to buy your shares at $ 3.90 per share. This is what stock brokers do for us. They will find a matching bid and offer price from respective parties. Buyers can be other individual investors like yourself or big pension funds looking to invest its money. Since stock is relatively liquid investments, the buy and sell process can be done almost instantly, unlike say, buying and selling a property. |
| Hari - Novice Investing |
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END |
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Hmm, I am confused. And I have questions |
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I'm fine, thanks. Bring me back to main page |
| Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding any securities. |
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