When you buy a stock who are you buying it from?
So when you buy a share of stock on the stock market, you are not buying it from the company, you are buying it from some other existing shareholder. Likewise, when you sell your shares, you do not sell them back to the company—rather you sell them to some other investor.
Do you need someone to buy your stock?
The majority of companies require you to go through a brokerage firm or a registered individual broker. “Brokerage” is just a catch-all term for any entity authorized to buy stocks. This might be a human stockbroker, a financial planner, or an online brokerage account.
When someone buys a stock What are they buying?
A buyer bids to purchase shares at a specified price (or at the best available price) and a seller asks to sell the stock at a specified price (or at the best available price). When a bid and an ask match, a transaction occurs and both orders will be filled.
Does a company know who owns their stock?
Generally no. They might not pay dividends. But they also have to send shareholder reports, shareholder meeting notices, and proxy forms.
Who buys stocks when you sell them?
Institutions, market specialists or makers, corporate traders or individual traders may buy your stocks when you sell them. Why Are You Selling Stocks? You might be selling stocks because you need…
Where does the money go when you buy stock during IPO?
When you purchase stock during the IPO, the money goes to the company whose stock you are buying. The second time the same company wants to sell stock (raise money from the public), it is called as a Follow on Public Offer (FPO). When you buy stock during FPO, the money again goes to the company whose stock you are buying.
What happens when there are no buyers on a stock?
Typically, this happens in thinly-traded stocks on the pink sheets or over-the-counter bulletin board (OTCBB), not stocks on a major exchange like the New York Stock Exchange (NYSE). When there are no buyers, you can’t sell your shares—you’ll be stuck with them until there is some buying interest from other investors.
Do brokers lose money when a stock goes down in bear market?
A broker won’t lose money when a stock goes down in a bear market because the broker is usually nothing more than an agent acting on the seller’s behalf in finding somebody else who wants to buy the shares. A broker is not required to buy from you if you want to sell shares and there is no one willing to buy.