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Who receives money when you buy stock?

When you buy stock, you are giving money to the company that issued the stock in exchange for a share of ownership in that company.


What happens to your money once you buy a publicly traded stock?

Theoretically the money goes to the company whose stocks you have bought. But, pratically it goes to the person who sold the stocks. When you buy the stocks you buy ownership of that company from the person who already held it. It is like transfer of ownership.


What type of ownership does Microsoft have?

Microsoft is a public company as people can buy there shares.


Did a Chinese company buy IBM?

Lenovo (A Chinese company) did buy IBM's PC business, back in 2004. But no one has bought IBM completely out to the point of new ownership.


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

When you buy a stock, the money you pay goes to the seller of the stock, which could be an individual or a company. This transaction allows you to own a portion of the company's ownership.


What are the differences between an equity grant and stock options in terms of compensation and ownership in a company?

An equity grant gives you ownership in a company right away, while stock options give you the right to buy company stock at a set price in the future. Equity grants provide immediate ownership, while stock options offer the potential to buy stock later at a predetermined price.


What is a stock in the financial world?

A stock is a unit of ownership in a company. If you own a stock of a company it basically means you own a tiny part of that company. You can buy lots of stocks for a company.


Can you own shares in your own company?

No, when you buy stock you are buying part ownership of a company, if you already own the company there would be no reason to buy stock, for you will not be making or losing any money. It is also illegal, you are no supposed to have inside information about stocks when you buy them.


What is a public limited company in terms of ownership?

I am no expert, but in a company you have the option to sell shares for capital income. So if it is limited to the public, then it means that bussinesses cannot buy shares. Ownership belongs to the members in terms of % shares.


What encourages people to buy shares in ownership of a company?

The dividends encourage the people to buy shares in the company as they would receive a share of the profits made by business they invested in.


What is it called when investors buy part ownership in a company in return for a share of future profits?

Buying stock (shares)


Can you explain what short selling stocks are?

In purchasing stocks, you buy a piece of ownership in the company. The buying and selling of stocks can occur with a stock broker or directly from the company.