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www.eInvesting.com Forum Index » The Stock Market

What happens when stock is sold?


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brian32
PostPosted: Mon Jun 25, 2007 11:27 am Post subject: What happens when stock is sold? Reply with quote

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Hi. When someone sells their stock, where does the money come from that they get? The company? Investors who want to buy the stock? Thanks.
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Dave Rathbun
PostPosted: Mon Jun 25, 2007 11:31 am Post subject: Reply with quote

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Could be either of those, or more. When you sell a stock, someone has to purchase it. That "someone" could be your broker, a stock market maker, a mutual fund manager, or an individual. There are probably even more options that I can't think of at the moment.

Bottom line, someone has agreed to purchase your shares for the price you have set (on a limit order) or the current market price (on a market order).
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brian32
PostPosted: Fri Jun 29, 2007 5:59 am Post subject: Reply with quote

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Thanks.
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Billy-Ray-Valentine
PostPosted: Wed Jul 11, 2007 5:48 am Post subject: Re: What happens when stock is sold? Reply with quote

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brian32 wrote:
Hi. When someone sells their stock, where does the money come from that they get? The company? Investors who want to buy the stock? Thanks.


good question, Im pretty new at this also and was wondering the same thing.
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ithatheekret
PostPosted: Thu Nov 22, 2007 3:34 pm Post subject: Reply with quote

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All brokerages have a trading account , much like a lawyers trust account . It's like a pool of floating funds , exchanges have them too .
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