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When you buy a stock, where does the money go?

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Sanford Balistreri

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4y ago

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Q: When you buy a stock, where does the money go?
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When you buy a public company's stock where does the money go?

The president's new yatch.


What happens to the money if a share of stock sells lower than what you paid for it where does the money go?

Basically the money doesn't go anywhere. When you buy a stock you will get a confirmation statement from your broker, showing the amount you paid for the stock + the commission. When you sell the stock you will also get a confirmation statement from your broker, showing the amount you sold the stock for - the commission. You compare the "Net Amount" from those two statements to see if you made a profit or had a loss. Either way, that must be reported to the IRS. The "Value" of your stock can go up or go down or stay the same. Once you buy a stock the amount you paid is only meaningfull to you and the IRS, as the only other time the IRS cares about the "Value" of your stock is when you sell it. The money is gone once you buy the stock - you can think of it as it went to whomever sold it.


How do you buy stock from McDonald's?

first you go to www.oneshare.com and buy mcdonalds stock


When you invest in the stock what is the money that goes to the company you invested?

In a lot of cases none of it goes to the company. The Republicans like to tell people how investing works is as follows: John Smith buys stock in Acme. Acme uses the money from the sale to hire people, make new and better products and improve its equipment. Bull. That works ONLY if the stock is an initial issue--in that case you're buying it directly from the company. In the secondary market most stock is in, when you buy stock you're buying it from me. I turn around and buy other stock with that money--stock I bought from John over there, who uses the money I gave him for his stock to buy that stock you don't like anymore. And so it goes. If you want to spend money on a company and have some of the money go to the company, buy the company's product.


What time can you buy Facebook stock?

When you have the guts and money !!


What is Borrowing money to buy stock?

Buying on margin


What did most stock holders who made money on the stock market do?

continued to buy more stocks


Why do inventors buy stock in corporations?

------- --------so they can get more money


What did investors buy when they lacked the money to continue purchasing stock?

farm


How do you buy stock in taca airlines?

Where can I go to check the value of Taca Airline Stock?


How do you buy shares from companies?

Go to the stock market


How do you buy this stock hopewell highway infra?

Go to Ameritrade and buy HHILY