/biz/ - Business & Finance

It's a ponzi, invest into things with fundamentals such as haircomb tokens on the bitcoin chain, unironically.

>>23704216
>why would that someone buy it
Because while you think the Stock is overvalued and sell it, the one who buys it thinks it is undervalued.

>>23704216
>who do you sell the stock to
The person who wants to buy
>why would that someone buy it at a price that is attractive to sell at?
Because they're dumb

>>23704216
Exchanges work more like placing orders.
When you "sell" you're actually placing a sell bid for the current stock price. People can then submit buy orders at the stock's current price or at a different price. If a buy order is made at the price of your sell order, the transaction goes through.

The stock market is so active though, with large firms and the like, that most sell orders get picked up practically immediately. Especially sell orders that're at the current stock price. Rarely is there no buyers when a person puts in a sell order.

>>23704216
That’s what a broker does.
A broker connects the two trading parties and earns fees (trading fee + ask&bid spread).
“Commission-free” brokers such as robinhood make their cash through large spreads. This is why you still pay a commission, even though it’s hidden.

While we're at it, how do covered calls, options, etc. work?? If I have the right (not obligation) to buy at a certain price, why would someone else be forced to sell at that price?

>>23704216
yes

Stocks are just a high level racket lol.

>>23704216
Just because someone is willing to sell doesn’t make the asset less attractive by default. There could be any number of reasons a person could be selling, locking in gains, financial trouble and needing to liquidate assets, thinking there’s a better stock in the short or long term etc.

If you bought amd when it was hovering around 2 and there was talk about keller working on a new cpu with them and then the stock reaches a new all time high at 30 dollars. You’d be pretty smart to sell cause it’s pretty rare to make 15x in only a couple years. If I look at amds road map at the time and think “hey there’s still room for growth here at 30” you may be thinking “sucker” but over team it reaches a new all time high of 92. Making 3 times ain’t half bad if you ask me.

>>23704510
Because it's a options CONTRACT. Legally binding and making it so they legally have to sell the shares to you.

>Why would someone sell an options contract then?
Because they want to still hold the stock long-term but believe in the short-term that the price will go down or not meet the strike price.

>>23704216
Investments, regardless if they are stocks - such as options, commodities, futures, real estate etc., are nothing but one's prediction of the future & the belief that their investment will be worth more in the future. People who buy stocks from people selling stocks are making their decision based upon the exact same reasons why the seller originally bought the stock in first place: their prediction that it will be worth more in the future.

>>23704216
Holy shit
Honestly how old are you?

>>23706287
Fuck you, geebag