How do stocks work and how do both sides (company and buyer)benefit from it?

318 views

How do stocks work and how do both sides (company and buyer)benefit from it?

In: 2

8 Answers

Anonymous 0 Comments

Companies issue stock and get back money in return that can fund expansion, allow founders/pre-IPO investors to take money off the table.

When most investors buy shares of stock, they are buying from other investors who are selling — not the company (company only sells shares at their IPO and very rare secondary offerings).

Investors hope to get share price gains and for many companies, dividend payments.

You are viewing 1 out of 8 answers, click here to view all answers.