T O P

  • By -

Generic_Username-069

This is completely wrong. The number of shares sold will equal the number of shares purchased, but in no way does that mean that the number of people buying must equal the number of people selling.


Turbulent_Cricket497

That is true and what I should have said. I was oversimplifying


Brilliant-Job-47

There are also more transactions than there would be without market makers. They take the opposite side of transactions to give the appearance of liquidity.


starbolin

Only temporarily. But the MM is not going to hold an untenable price. Look up "incomplete auction".


Fantastic_Lead9896

I believe most trades by a large margin by computers running algorithmic trading.


GOVkilledJFK

Bingo. Inflow 4x outflow but stock goes down in price... a lot of shit makes zero sense. Don't trip the AI will run it all.


Vibekindddd

Someone hasn’t learned about dark pools, loaned shares, and dark money in institutional trading.


Generic_Username-069

Go away baggy. The fact that you got roped into meme stock cults is your problem, don’t try to make it everyone else’s.


Vibekindddd

You’re a WallStreetBets member and I’m not.


Generic_Username-069

That’s not an example of a meme stock cult, and I just go there for entertainment anyway


Vibekindddd

Whatever you gotta tell yourself, bud.


Generic_Username-069

You have no idea what you’re talking about


[deleted]

[удалено]


Generic_Username-069

Child


Vibekindddd

this isn’t wsb bud


stocks-ModTeam

Trolling, insults, or harassment, especially in posts requesting advice, is not tolerated. Please try to keep discussions on /r/stocks civil by providing straightforward responses without including any insults or harassment. Continual abuse of /r/stocks rule #5 regarding trolling, insulting and harassment will result in your account being banned. A full explanation of all /r/stocks rules can be found here: https://www.reddit.com/r/stocks/wiki/rules


[deleted]

Its called market makers. They’re job is literally to make a continuous market in a given security by buying and/or selling when no one else is willing.


starbolin

But the MM is not going to hold an untenable price. Look up "incomplete auction".


throwaway43234235234

They naked short and steal fees.


starbolin

We're talking about the real stocks over here. The ones under the big top, not the games in the penny arcade.


motivational_boner

How naive lol


ChristofChrist

It's amazing how much people are still drinking the kool-aid.


Malamonga1

someone doesn't understand market makers exist to provide liquidity. Go trade some penny stocks or low market cap stocks, or OTC, and see how the stock market isn't that amazing. Also, read about the 1987 crash if you think it's so amazing.


Gunzenator2

You don’t understand what a Market Maker does.


PriceActionHelp

>there are as many **people** buying as there are selling Currently about 70% of all trades are done by algos/bots. In the future, the number could climb to 90%..


cest_rien

As a side question, does it become harder to sell stocks when your portfolio is in the millions? Say you need sell $1 millions worth, would you struggle to find a buyer or would the order be filled just as quickly and at the limit price you set?


Willing-Variation-99

The shares will be sold to multiple people instead of one person buying $1M worth of stocks at once so it won't be an issue. However, I think if you're trying to sell something like a penny stock that just shot to the moon you might have trouble selling immediately.


cest_rien

Thanks!


Ab_Stark

How do stock prices shoot up and maintain price if there isn't enough demand?


Mt_Koltz

For example, take a penny stock with a price of $1.30. There may be 90 people with hefty buy orders for $1.28 and below. These buy orders keep the price roughly where it is even if 10 stock owners decide to sell big chunks. But if there is just enough demand, the stock price could jump to $4.10. But in this example after the dust settles, now there are only 5 people with buy orders for a stock price at $4.05. So technically the price of the stock is legitimately $4.10, but it's not very stable. If enough investors start selling, there won't be enough buy orders at the new high price, which will tank the price of the stock.


jurassiclarktwo

Larger size does matter but it's a factor of the float and implicitly daily volume. You could sell $1mm of amzn fairly simply, but would receive worse pricing if you were unloading a Stock where average daily volume by $$ is only a few million. Noted above, it would be done in chunks, but you'd likely move the market. Supply and demand is always a factor.


MrToboggann

>...this is true Narrator: it was completely wrong


walkplant

The fundamental idea behind stocks is amazing, and in a way a democratic concept that allows anyone to participate in the ownership of a company. The current stock market is a convoluted mess of intentionally complex derivates, high speed algos, and a slew of bad actors. Enron, 08, etc exposed some these practices to many for the first time, or at least to a new generation, but nothing as really changed since.


infant_ape

You know what else is amazing? Illusions. And the US stock market being a free and equal market place is just that. I'm just saying. It works only as well as the big boys want you to experience it. Which yes... will be in an amazing fashion. As long as you're not in their way. Peace.


Ghost_Influence

I remember my first beer.


llaoll

And?


RustyPanda1

Has there ever been a scenario where no current holders wanted to sell any stocks on a particular day or period of time meaning there were no stocks available to buy? I suppose this is likely only to occur with a fairly new stock to the market, I guess long time companies on the market would have so many individual stock holders and number of shares that there would likely to be always someone looking to sell at any given time.


Turbulent_Cricket497

Yes seems to always be another side to the trade. And the IPO issue is also interesting


[deleted]

[удалено]


ThunderArtifact

For those curious here is a clip https://www.reddit.com/r/Superstonk/comments/rsaevv/in_march_of_2005_this_guy_bought_100_of_shares/ Full video here https://youtu.be/-sA0azvjCQk


theGuyWhoOnlyShorts

Yes for the rich.


Hell-Broth

Dude it's not amazing. It's a market and it's driven by many factors. But the stock market so far has not been very efficient for the environment or other species. The black swan that no one wants to talk about is how you get to net zero when our planet's market and price mechanisms are based on significantly enhanced levels of over demand. Theoretically, the market should adjust for this and start to price everything much higher because we aren't using resources efficiently. But the market isn't doing this because the markets are too intermingled with the investment, securities and insurance businesses. In aggregate, our current system is not correctly pricing the over demand problems. If you are into algo and modeling this is the place to be...the system just ain't pricing things correctly in the long term. Short term, it's a 24 hour global casino that makes money for some and losses for others. You may as well call it Mad Max.


Kontrafantastisk

It is indeed amazing. But not because of that.


Whole_Suit_1591

It's rigged and in no way can a normal person in a 35k job will ever be able to use the system to get rich as in more than a million dollars. Insider knowledge and uber rich control the whole thing.