Question about Stocks

[JohnCU]

Let's say you bought a stock 2 years ago, and you're ready to sell it now because you'll get a nice return...how do you know someone will be there to buy it? I mean, you can't sell it if no one wants to buy it, right? Or is there ALWAYS someone ready to buy?

 

[bradruth]

I think there's generally someone there to buy.

 

[slydecix]

It's extremely rare that there won't be anyone on the other end waiting to buy

 

[Hector13]

Originally posted by: Elitebull
It's extremely rare that there won't be anyone on the other end waiting to buy

not really... you can own shares for non-public companies, in which case selling them would be a pain in the ass.

If you are talking about a publicly traded stock, then that is a different story. If the stock is listed (ie, on an exchange like the NYSE), then the specalist's job is to step in to buy if there are no other buyers.

If the stock trades OTC (like on the nasdaq), then there are market makers who will post their bid/offers for the stock. If it is "thinly" traded, though, don't be surprised of there is a big difference between what a market maker will pay you to buy (his bid) vs. what he will sell to you at (his offer/ask).

 

[datdamkid]

not to be off the topic or anything...but is there a stock market game type of thing where you invest fake money just to see how the stock market works...that would be awesome...

 

[Kenazo]

For the right price there is always a buyer...

 

[slydecix]

Originally posted by: Hector13

Originally posted by: Elitebull
It's extremely rare that there won't be anyone on the other end waiting to buy

not really... you can own shares for non-public companies, in which case selling them would be a pain in the ass.

If you are talking about a publicly traded stock, then that is a different story. If the stock is listed (ie, on an exchange like the NYSE), then the specalist's job is to step in to buy if there are no other buyers.

If the stock trades OTC (like on the nasdaq), then there are market makers who will post their bid/offers for the stock. If it is "thinly" traded, though, don't be surprised of there is a big difference between what a market maker will pay you to buy (his bid) vs. what he will sell to you at (his offer/ask).

You're absolutely right, I assumed that he was referring to publicly traded stock.

 

[mdcrab]

If it is an exchange traded stock, place a "market" order and it will trade at going price.
If it is a thinly traded stock (low volume) you may want to use a "limit sell" order.

mdcrab

 

[Hector13]

Originally posted by: Elitebull
You're absolutely right, I assumed that he was referring to publicly traded stock.

And he most probably is... as are most people when talking about stocks.. I was just being pedantic. A lot of people don't realize that there are shares of stock out there that don't trade on any public market place. This can be the case for a lot of private equity/ventur capital fims. They will only large amounts of very illiquid stakes in different private companies.

 

[Pheran]

Originally posted by: datdamkid
not to be off the topic or anything...but is there a stock market game type of thing where you invest fake money just to see how the stock market works...that would be awesome...

Yup, there are several, try Virtual Stock Exchange.