What affect does mass selling of stock have on the economy?
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When you haggle, it's likely one of you will lose, generally the buyer loses as the seller is always looking to profit, even if it is for a small amount. It could happen the other way around but rarely.
We are talking market prices here, not whether you just want to get the shares off your hands because you have excess or because your worried.
Both people are trying to maximise their gains, it's a bit of game theory, but someone there is always a winner and a loser, it just depends how big a winner or loser you are.
What affect does mass selling of stock have on the economy?Trading \affects economy
If there is a panic , the cash flow wont be there
whihc means no supply of money
and gues wat the inflation will rise as we;ll
What affect does mass selling of stock have on the economy?When the market for any asset declines, it means there is less wealth. Less wealth means less spending. Spending creates jobs. Jobs create income. People invest a part of that income in assets. Which creates more wealth.
You're very astute in your observation that every stock seller needs a buyer. Just like any other "product", some people like to buy when an item goes "on sale".
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