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re: Question about how stocks work?
Posted on 6/23/20 at 9:50 am to Cycledude
Posted on 6/23/20 at 9:50 am to Cycledude
quote:
I know it makes the price go up.
This is wrong. It could go down. It could stay the same. Depends what the market price is.
Most stocks there are thousands of transactions every day. You put in a bid (a price you will pay) and the market which is now a computerized system, will look for buyers willing to sell their stock at that price. The price fluctuates constantly based on these transactions. The company itself only makes money based on the initial selling of the stock.
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