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Where the Shares for new markets are coming from originally when there was no one to sell yet?

When a new binary market (Yes/No) is started, where is the original supply of shares coming from to fulfill first BUY orders? What defines a total market supply of Yes and No shares on a market? The FAQ does not address that.

Is it correct that PredictIt just matches outstanding buy orders for Yes and No shares as soon as bid prices add up to $1.00?      So basically a person A was bidding for 10 "Yes" shares at $0.7,   and a person B was bidding for 10 "No" shares at $0.3   =>     orders are fulfilled and 10 matching Yes and No shares are generated out of thin air (as there was no one to sell them), is that correct?

1 person likes this idea

I'm not sure, but I think that this is a very interesting question. 


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