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The stock is originally sold by the company, generally upon the formation of the corporation, and is how the company raises funds. After that, those who bought the stock can sell it, for more or less than they paid, making a profit or loss themselves. the company isn't involved in any way.

it is true that many corporations own a fair amount of their own stock. As such, increases in the stock value increases the value of what they own...but that is entirely different than trading in it...in fact almost opposite.

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Q: Does a company profit off of traded stock?
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How do you make money off shares?

There are two types of shares, private and public.Private shares are ones that are not traded but are received as rewards for direct investment. To profit, you can sell your shares to a third party for a higher price. Or , as an equity shareholder, you may receive part of the profit of the company. You would then make money by simply owning the shares.Public shares generally work the same way but rather than obtaining them from direct investment, you obtain them from other shareholders on a stock market. Then you can either hold them for dividends, or profit from trading them.


What are the benefit of IPO for investors and company?

For Company: * They can raise capital for their business. They can use to fund their expansion & growth. For Investor: * Ideally speaking, the stock of any fundamentally sound company would go up after being listed in an exchange. Hence the IPO is the only place where you can get the stock at the lowest possible price. Hence if they buy stocks in an IPO, they can sell it off at a higher price and make a profit


What are penny stocks?

A Low-priced, Speculative SecurityThe definition of a penny stock varies depending on who you ask. Some consider any stock trading under $5 to be a penny stock while others consider any stock trading under a dollar to be a penny stock. These stocks are often traded off of the major exchanges and are bought and sold as Pink Sheets or off the Bulletin Boards. There are large risks associated with speculating on penny stocks. They can be easily manipulated by large investors like hedge funds. The bid ask spread can be large and serve as a significant barrier to making a profit. Also, the lack of liquidity can make it difficult to get in and out of your investment and cause quick price fluctuations. One thing to think about is that very seldom if ever does a stock start off as a penny stock so the stock has already had some difficulties to get to where it is at now. Anyone investing in these stocks should consider it a speculative bet. Rewards could be significant but you could very well lose everything you invested.


How does a public limited company raise capital?

They open the company to the public and the public can then invest in shares which means the Sole Trader/Partnership is then having some of their company bought off them which means money! But then the person who has bought into the company gets a percentage of the profit made.


What is the cost of an Avaya stock when spun off in 2000?

http://www.news.com/Lucent-spinoff-falls-in-market-debut/2100-1033_3-246474.html Published: October 2, 2000, 2:35 PM PDT "Unlike most initial public stock offerings (IPOs), which open for trading at a specific predetermined price, Avaya had traded on a "when-issued" basis since Sept. 18, when it opened at $20.50 and closed unchanged, according to the company. Stocks that trade on a when-issued basis are conditional, because the stock has been authorized but not yet formally issued. Avaya's stock price climbed over the last week before opening at $22.88 today, the company's first day of regular public stock market trading."

Related questions

What is the role and function of stock broker?

A stockbroker is a person or company who buys and sells stocks on behalf of another person or company. Stockbrokers make a profit by charging a commission off of the purchase and sale of stocks. A stockbrokers profit can vary, they may be very rich or go bankrupt


Can a holding company use loss of its subsidiary company to set off its profit?

No,


How do you make money off shares?

There are two types of shares, private and public.Private shares are ones that are not traded but are received as rewards for direct investment. To profit, you can sell your shares to a third party for a higher price. Or , as an equity shareholder, you may receive part of the profit of the company. You would then make money by simply owning the shares.Public shares generally work the same way but rather than obtaining them from direct investment, you obtain them from other shareholders on a stock market. Then you can either hold them for dividends, or profit from trading them.


Why does a company seek to make a profit every year?

After all the employees and the expenses have been paid off the profit is used to improve the company or its also how the owners make money


What is the stock symbol for daimler Chrysler?

Chrysler is no longer publicly traded so it does not have a stock symbol


What if your company needs to liquidate its existing stock means?

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What are stock trading companies?

Stock trading companies are business that profit offer the buying and selling off stocks and similiar investments. They can be local offices and/or internet based.


What are the benefit of IPO for investors and company?

For Company: * They can raise capital for their business. They can use to fund their expansion & growth. For Investor: * Ideally speaking, the stock of any fundamentally sound company would go up after being listed in an exchange. Hence the IPO is the only place where you can get the stock at the lowest possible price. Hence if they buy stocks in an IPO, they can sell it off at a higher price and make a profit


Is it legal for a campground to make a profit off of a public utility such as electric?

A private company can make a profit on anything. Yes, they can mark up electricity.


What is the meaning of delisting in corporate?

When a listed company from a certain stock exchange get taken off from the listing, it is called delisting. That mean the stock or share of that company is no longer trade-able (you can'tbuy it or sell it)on that stock exchange.


What is the ticker symbol for CareFusion?

The ticker symbol for CareFusion (recently spun off from Cardinal Health) is CFN and it is traded on theNew York Stock Exchange.


Who were the lead underwriters for cognizant in June 1998?

In June of 1998, the company had a partial spin-off from the main company. This spin-off was called IMS Health. This was the first offering of public stock in the company.