ST Alpha - "shares don't float. the price only rises when there are an equal number of people selling as buying." (Reading a Post)

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In response to "My assumption is the only money they collect is the IPO and the trading fee" by Will Hunting

shares don't float. the price only rises when there are an equal number of people selling as buying.

Posted by the 40 year old virgin (aka chris) Apr 20 '10, 15:20

any rise in the share price they have to pay is offset by what they get on the other side from the person taking a hit when they have to reverse a short position

Responses:

If I buy it at $40; they get $40. If I sell to you at $42, I get $2 profit and if it cashes at $45, you get $3 profit...they pay $45 out of what - Will Hunting Apr 20, 15:22 26
- [deleted] 1
  - This is HSX we're talking about here. -- nm - Will Hunting Apr 20, 15:30
- [deleted] 23
  - So before it's offered for sale, it's already been sold? - Will Hunting Apr 20, 15:25 15
    - [deleted] 14
      - Nice explanation, thanks! -- nm - mara Apr 20, 15:29
      - Okay; that, I can understand - Will Hunting Apr 20, 15:29 12
        
        [deleted] 11
        
        hah, we should all get a desk at one of the brokerages. who says you can't get paid to Slacker Talk all day? -- nm - the 40 year old virgin Apr 20, 15:34 10
        
        [deleted] 9
        
        I grow weary of seeing "wary" be constantly spelled wrong. :) -- nm - Beryllium Apr 20, 15:46 3
        
        [deleted] 1
        
        sorry, I was just being a nitpicker dork. (See retraction, below) -- nm - Beryllium Apr 20, 15:52
        
        (actually, I have to retract this; a quick search of the past 2 months doesn't turn up any supporting evidence. Must have been somewhere else.) -- nm - Beryllium Apr 20, 15:50
        
        I'm definitely wary - Reagen Apr 20, 15:45 4
        
        [deleted] 3
        
        the potential for whales as pixie mentions really does tempt me though. - Reagen Apr 20, 15:49 2
        
        I'll play ya for it. -- nm - Will Hunting Apr 20, 15:53
        
        [deleted]
  - At IPO? -- nm - mara Apr 20, 15:24 6
    - [deleted] 2
      - No, I'm just wondering who gets the money at IPO when somebody buys. -- nm - mara Apr 20, 15:26 1
        
        [deleted]
    - [deleted] 2
      - Who's selling it at IPO? -- nm - mara Apr 20, 15:26 1
        
        [deleted]
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If there are an equal number of people selling as buying, why does it rise? What would make it fall? -- nm - mara Apr 20, 15:21

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shares don't float. the price only rises when there are an equal number of people selling as buying.

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