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Originally Posted by moneymatters
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?
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The answer is: yes you can call up your broker and tell him that you want shares of company X. And the share came from those 1000 shares that people had purchased. It is a very simple mechanics. When there is buyer, there is seller. Otherwise, there will be no transaction. And there will always somebody out there who would want to sell if you offer them at higher price. If one of the shareholder needs money real bad, he/she can even sell his share to you at a lower price.
Quote:
Originally Posted by moneymatters
Is it possible to have shares that you want to sell but not be able to sell them?
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No, i think in most cases, you will be able to sell them, if you offer them low enough price. If current price is $ 100 per share, and you want to sell it at $200 per share now, who would want to buy? On the other hand, if current price is $ 100 per share and you are offering $ 90 per share, you can always find a buyer for it.