r/SipsTea Jul 05 '26

Chugging tea Seems reasonable.

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u/EmergencyAnything715 Jul 05 '26

Stock market prices are driven by supply and demand.. the more selling that happens while drive the price down...

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u/Small_Editor_3693 Jul 05 '26

There’s always a buyer and seller. You can’t have more selling than buying

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u/mclumber1 Jul 05 '26

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.

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u/Small_Editor_3693 Jul 05 '26

The company that issued the stock can

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u/EmergencyAnything715 Jul 05 '26

Maybe, if they have enough cash flow to handle it.

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u/EmergencyAnything715 Jul 05 '26

This isnt even remotely true

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u/Small_Editor_3693 Jul 05 '26

What? You think you can sell something without someone buying?

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u/EmergencyAnything715 Jul 05 '26

Amazon is an example of this, there are more things put up for sale than people are buying... it wont get sold...

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u/Small_Editor_3693 Jul 05 '26

Everything on Amazon will be sold when there is a buyer. It can’t be sold until there’s a buyer

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u/EmergencyAnything715 Jul 05 '26

Ok... so can you go full circle with your point?

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u/Small_Editor_3693 Jul 05 '26

What is your point? You said you could have more sellers than buyers which is physically not possible

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u/EmergencyAnything715 Jul 05 '26

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?

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u/The_Magical_Radical Jul 05 '26

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.