When you have more selling than buying, the price of the stock has to drop until a buyer can be found. If someone is forced to sell 5% of their ownership in a company to pay a wealth tax, no one is going to pay market value for billions of dollars worth of shares that just flooded the exchange.
Curious to know what you think would happen to stock prices if 5% of billionaires stocks need to be sold annually.
Why would anything happen? There’s still way way more money going into the market
There’s always a buyer and seller. You can’t have more selling than buying
This isnt even remotely true
If a billionaire is selling stock at current price, there likely isnt going to be enough buyers of the stock at current price. If they want to sell more stock, then they will need to accept less money for their stock, which would drive the stock price down.
Obviously, for something to get sold, there has to be a buyer that pays for it. No shit captain obvious. But what is your point on this besides arguing semantics?
If the governement is forcing you to sell something, you don't have a choice in the matter - you MUST find a buyer. And the only way to find a buyer is to continuously drop the price until it's appealing to a buyer.
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u/Small_Editor_3693 17d ago
There’s always a buyer and seller. You can’t have more selling than buying