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

Question

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

In: 0

Answer 1

When you buy them, it’s essetially going to their bank account after brokering fees.

When you sell them, it depends who buys them. If it’s a stock exchange that buys them, then the money comes from the stock exchange. If it’s the company, the money comes from the company (this usually happens when the company wants to lower their profits for tax reasons). If it’s to another person, that person pays you.