If a stock is going up, is there a near certainty that SOMEONE will buy shares of it?

Question

If a stock is going up, is there a near certainty that SOMEONE will buy shares of it?

Answer 1

Yes

If the stock is listed on a an exchange there are always buyers for a stock regardless of the price.   There are market makers and/or specialist who are required by law to provide markets for their stocks and in doing so must be always ready to either buy or sell.

Just contact you brokerage firm, either by phone or on-line and they will be able to provide you with a current market quotation which is the best price to buy the stock or the best price to sell the stock.

Answer 2

Yes, there is a "near certainty" that someone will buy shares in it, and there is a "dead certainty" that the shares will reverse and somone will have bought at the top.

Answer 3

In short, yes.

A stock may continue to go up without people buying shares of it due to the market makers adjusting the "market price or spread" higher. This doesn't usually last very long because if there are no buyers, the market makers will have to move the price down to attract volume (activity).

Realistically though, almost all stocks have a healthy amount of volume each day (shares trading hands). And for every seller, there is a buyer whether it is going up or down.

Answer 4

No.

What you're talking about is known colloquially as the "Greater Fool Theory."

This theory basically assumes that the price of a stock is irrelevant.  It doesn't matter how overvalued a stock is, you can always buy it and make a profit from selling it to someone that's dumber than you (whose willing to pay more for it).

The only problem with this theory is that, eventually, somebody will get left holding the bag when he can't find anyone dumber than him to sell it to.  The goal of the theory, then, is to be the 2nd dumbest person on the face of the planet, so that there's always that one person left to sell to.

Is that really your life goal: to be the second dumbest person on Earth?