Where does the money go when you buy or sell stocks?

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If I buy 100 shares of a company, does their bank account go up? And if shares are sold do they go broke?

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Anonymous 0 Comments

It’s the same thing as when you buy apples. You buy them from somebody else who decided to offer theirs for sale. You can later offer yours to somebody who wants to buy them.

At some point they came from a tree, but that’s not relevant to your trade and nobody really thinks about it.

The only real difference is that there are thousands of people selling identical apples in a huge marketplace, so every seller posts the asking price of their apples and every buyer posts a bid for how many apples they want to buy, and every bid higher than an ask triggers an automatic trade.

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