Quote:
Originally Posted by EvaluatingStocks
The other way that the company can give investors ROI is through stock buybacks. Basically, as a shareholder you have a claim on future earnings of the company. When the company buys back its own shares, there are less to go around in the open market. Therefore, your shares are worth more since you now own a bigger "piece of the pie".
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This is the one thing that confuses me and that I have had no luck whatsoever in locating any information on.
If a company has a limited number of stocks, what happens if more people want to buy it than there are stocks available? And when someone "sells" their stock, who buys it?
What I mean is if a company has 1,000 shares, and all of those shares are purchased, can I just call up a broker and say "Hey, I want to buy a share"? And if so, where does it come from? If not, how do you know if there are shares available? And what if I want to sell my share? Where does it go? Is it possible to have shares that you want to sell but not be able to sell them?