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If the selling price is $30, will you get $30 for every share.




They say that the stock price depends on profitability of the company, and also how many shares have been sold. Therefore, if a person sells 1 million shares of XYZ, will he/she get $30 million dollars back from XYZ, or will he/she end up getting less since the value of the company is decreasing as the shares are being sold.




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If the selling price is $30, will you get $30 for every share.

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May 02, 2010
 Stocks Simplified Writes
by: Shaun

The price of the stock depends on supply and demand of the shares. If the stock is trading at $30 and you sell your shares it will probably get filled at $30 or around it. If there are a lot of people selling the stock however and not a lot of people buying it, the price of the stock could fall down until it is cheap enough for buyers to want to get in.

In other words, every sell order has to be matched with a buy order. If are not enough people willing to buy the stock at $30 but there were buyers at $29.50 or so, you would get filled there.

Now if you had 1 million shares of stock and placed a massive sell order on it, that is going to bring in a lot of sell orders into the market and will probably push the price of the stock down (unless a lot of new buyers come in to soak it up), so you might get filled at say an average price of $29, instead of $30. If you only have a couple hundred shares it isn’t as big of a deal because a lot of other people have to sell the stock in order to affect the price that much.

If you wanted to sell at $30 or higher you could place a limit order for $30 or more in which case you would not get filled unless that threshold is met.
May 02, 2010
 Thanks
by: Anonymous

Thanks, I am new to the stockmarket game, and I was quite unclear how it worked. Shawn, that is exactly what I needed to know.

Thanks again.
May 05, 2010
 Thanks
by: Lochinvar Sturdy

That was helpful to me as well. I'm new to online trading and it did not occur to me how selling large amounts of stock can affect the price.
May 05, 2010
 Stocks Simplified Writes
by: Shaun

Yes that is how pump and dump schemes work. People buy a stock then go on the Radio, T.V., send out newsletters, etc attempting to get a massive amount of other people to buy the stock and push the price up higher so that they can make a profit on the rising price.

It?s illegal, but people still try to do it.

Anyways glad I could help both of you out.

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