Who buys shares when I sell them?

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Transactions involving the sale of shares are electronic, so you don’t get to see or know who bought your shares. An individual or company may likely be the buyer, but they must indicate interest before you can cash in. In this post, we shall be looking at those who may buy your shares.

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Market Markers

If you trade in bigger markets like the NYSE or NASDAQ owned market, then you will be familiar with Market Markers. Market Markers are there to maintain orderliness in the market and engage in buying and selling of shares. They match orders with sellers or buyers and can buy or sell shares when there are no buyers or sellers available. Market Markers make money on volume and can buy and sell shares the same day, even if they end up making little profit.

Professional Traders

Professional traders buy shares with the mindset that they can make profits from selling them. They make gains from your losses and can push investors to sell their shares to them at a lower price.

Individuals in the company

Some directors and officers are good investors. They have been with the company for some years, and know its potentials. These individuals buy and hold shares for many years. It may take long, but they are sure of making profit once they sell. The company can also buy back their shares when you offer them up for sale.

 

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