lawman
Thinks s/he gets paid by the post
Howdy from the great State of Texas..Swore off individual stocks back in 2000 or 2001 whenever I lost quite bit of money..Well gonna give it a try again..First question..
I don't really understand where all these shares are..If I own stock in company ABC and something really big happens that drives the price up say 20% on some big announcement where do the shares come from that people buy within minutes after the announcement? I'm told that for every share sold a share must be bought and vice versa but people don't normally list their shares to be sold at a upper limit price when selling..I understand the use of a limit price when buying but how does someone buy shares within 20 minutes of an announcement that causes the value to go way up..Most shareholders don't even know abut the announcement at that time so how could they possibly have shares for sale at the much higher value?
I don't really understand where all these shares are..If I own stock in company ABC and something really big happens that drives the price up say 20% on some big announcement where do the shares come from that people buy within minutes after the announcement? I'm told that for every share sold a share must be bought and vice versa but people don't normally list their shares to be sold at a upper limit price when selling..I understand the use of a limit price when buying but how does someone buy shares within 20 minutes of an announcement that causes the value to go way up..Most shareholders don't even know abut the announcement at that time so how could they possibly have shares for sale at the much higher value?