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

If we’re talking shares on the open market then you’re buying and selling them from a 3rd party. It’s no different than buying anything else; the seller gets the profit. You just don’t personally see the seller because you’re using a middleman (broker) for the transaction.