how do large and small shareholders make money from their stock in a company and is there difference?
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There are differences more for insiders vs outsiders as opposed to large vs small shareholders (assuming the shareholders are private parties). Insiders have to disclose intent to buy/sell shares at some price well in advanced of buying them to avoid insider trading issues. Meanwhile private traders can buy at market value anytime the market is open.
You make money from a stock by the value of the shares you hold appreciating in value, however these gains are ‘unrealized’ until you sell the shares, you are also not taxed on those gains until this time. This is why you see billionaires with ballooning net worth that pay ‘zero tax’. Their shares in their companies are increasing in value, and they are not selling them, so until they do they don’t pay tax on it. Then they start leveraging their shares to borrow money to spend to continue avoid selling their shares. This works well assuming that the shares continue to increase in price. Shares also sometime pay a dividend which is a small cash grant per share given to shareholders.
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