Your stock market questions answered

lookout123 · 04-29-2005, 02:14 AM

you know the addage about a sucker being born every minute? there is always someone who thinks that ABC is a bargain.

but at some point the market does dry up. I have had instances where there was "no market" for my client's shares. it happens quite a bit when someone buys penny stocks - they tend to go bad and no one wants to buy. in that case, the holder of those shares gets to just keep hanging on to them. it is sort of like real estate - it is only worth something if someone wants to buy it.

for the most part though, there is always an open order to buy of ABC and an open order to sell of ABC. The "market maker's" (the people in the colored coats) are there to match the two up and charge a fee along the way.

04-29-2005, 02:14 AM	#27
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	you know the addage about a sucker being born every minute? there is always someone who thinks that ABC is a bargain. but at some point the market does dry up. I have had instances where there was "no market" for my client's shares. it happens quite a bit when someone buys penny stocks - they tend to go bad and no one wants to buy. in that case, the holder of those shares gets to just keep hanging on to them. it is sort of like real estate - it is only worth something if someone wants to buy it. for the most part though, there is always an open order to buy of ABC and an open order to sell of ABC. The "market maker's" (the people in the colored coats) are there to match the two up and charge a fee along the way. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

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