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wc asked in Business & FinanceInvesting · 2 months ago

what does it mean to be a "net buyer of stocks"?

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  • Lv 6
    2 months ago

    a big institutional investor in hedge funds, mutual funds, and insurance companies zeroes in on a stock that it owns and begins selling it off.

    As the large investor dumps the stock onto the market, the price will naturally begin to take a nosedive. Other investors might start to panic, and then begin to unload the stock as well. As a result, the stock's popularity, and of course price, continues to fall.

    At some point, the institutional investor decides that it's time to jump back into the market and it begins an aggressive buying program to acquire new shares of a given stock. Soon other investors notice that the stock's price has begun to rise again, and they also begin to buy up the stock so they can ride the price up and make a profit. This demand continues to push the price up higher. The cycle might begin again when the price hits a sufficiently high price, and it often does.

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  • 2 months ago

    Buying more than you sell.

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  • Matt
    Lv 5
    2 months ago

    It means you buy more than you sell.

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