What is the share value of a company means? If I buy/sell a share of a company, who gets/pays the money?
If a company has 1 million shares in the market. What does that means? If I buy a share of that company, who gets the money of that share that I have bought actually. Even though I know that I pay the money to broker but actual money goes to whom? Similarly, when I sell a share of that company, who gets that money?
Public Comments
- well if you buy off the NYSE then you give that money to a broker or other seller, the company that issued already got the money from the IPO and the subsiquent reissues. after a company offers shares to clearing houses they then sell them on the open market like the NYSE to make money and then the market or other buyers and sellers negotiate the price. and when you sell you get the asking price minus a commission for the broker
- if a company has one million shares outstanding, that means they are public owned. a share value the the amount the share is worth at any given time as it changes 24/7 and they can go up or down depending on how well a company is doing. any shares you buy, it goes to the company as capital for operating expenses and structuring. when you sell the share, you get the money and someone else actually buys your shares. only buyback shares will go back to a company as it may want or need more controlling interest as a stock holder.
- Think of it like this...owning a share of stock in a company is like owning a tiny slice of the company. Ok, companies created "shares" to give them access to money. People who invest say...500$ in a company are giving that company 500$ in return for being part owner. So, to answer that question, the company gets your money. Now, if the company does good, each "share" of the company increases very slightly in value. If you own thousands of shares, you can make money back by selling the shares. (The company has to sell back your shares when you execute the trade.) You sell the shares to other buyers...who are also willing to invest their money, and own part of that company.
- The shares are offered for sale to the public to own a portion of a company. The initial funds go to the company for reinvestment. The value of a company, earnings of the company , and popularity of the brand name dictate the value of a share. Shares are offered for trade on the Stock Exchange and the money paid by the buyer goes in full to the seller. The broker who conducts the exchange of stock (shares) is paid a fixed pre-determined fee for each transaction. It is possible for the broker to collect a fee from both seller and buyer if they are both his client. The return on stocks compared with many other types of investments are risky and the returns are usually low. You can loose all your money and if not devalue your investment easily with a few bad decisions. Many fortunes have been lost in the stock exchange. I think the stock market is not a place for the novice.
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