Is there a certain amount of shares of a company to buy??

Question

how can people constantly buy stocks what if they run out??

and what is a split?

Answer 1

people can buy stocks because there are also people willing to sell stock. sometimes companies will put more shares on the market but many larger companies always have some number of shares being offered by various owners of those shares.

splits are usually when the stock rises in value high enough that the company decides to 'split' the stock - often 1/2 the price but other ratios can occur. so if you had 10 share of a stock at $100 per share and the company decided to split the stock 2-for-1 you would then own 20 shares valued at $50 per share. one of the ideas behind splitting stock is that it will interest more buyers at a lower price per share.

Answer 2

Originally a company goes public and the shares are then available for trading on an exchange. This is called an initial public offering.

After that, when you buy shares you are buying them from people who are selling them. You are not buying them from the company.

A stock splits because the company decides that they will issue 2 shares for each 1 share that is outstanding. If you owned 50 shares of MSFT before the split, you would own 100 shares. But the value is cut in half; therefore although you own more shares, your total value is the same. Companies usually split when the share price gets too high and the company feels they stock would trade better with a lower price. Usually when a stock splits it's a sign that the stock has been rising.

Answer 3

Not really-it depends on a person's risk tolerance.  As demand increases for a particular stock, the price goes up.  A split is when the share divides in some way.  

Answer 4

You can only buy stock shares of a company if they go public.  Not all companies offer stock shares to the public.

When a company declares stock splits example 2:1, your stock shares will double but the total value is unchanged which means that the stock per share decreased.  Example is you originally own 2 common stocks of McDonalds @ $25 each for a total of $50 then McDonalds declared 2:1 split.  Your shares is not up to 4 but the total value of these 4 is still at $50 making each stock share now down to only $12.50 each.

Learn more about stocks:  http://www.investmentpaysoff.com

Answer 5

all companies have an authorised share capital. thats the maximum number of shares they can sell, so people can only buy up to that amount.

A stock split is when for exmaple:

ABC Company has 10 000 shares for $1 each

It decides to do a 2in1 stock split. That means

there will be 20 000 shares for .50 . The share

capital amount remains the same but number of shares

increase.