* Bad news tied to corporation with traded stocks.
* Stocks start getting sold.
* Who "buys" these free-falling stocks for more money than they're going to be worth one minute later?
Who buys those free-falling stocks? The obvious part is that no one in their right mind would buy a stock high knowing that it'll lose them money. This is not an area of expertise for me so my best guess is that the corporation the stocks represent are "forced" to buy them back? Because if you're selling off stocks you're getting paid for their value. So where is that value coming from? Thanks in advanced for constructive on-topic replies.