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To: Charles T. Russell who wrote (8766)9/15/1998 8:36:00 PM
From: ChrisJP  Read Replies (1) | Respond to of 14347
 
Dear Charles,

>> For every buyer there is a seller.... no? <<

When I bought my shares, who sold them to me ? When I placed my buy order, did I have to wait for someone to sell before my trade was executed ?

In the big scheme of things, you are right for every share bought there is one sold. But moment to moment, there can be many buys before there are any sells. And vice versa. Price equalibrium is reached when the shares bought equal the shares sold. The imbalance causes the change in price.

This does not account for MMs who of course act as surrogate buyers and sellers (i.e. middlemen).

Regards,
Chris