Futures Vs. Options Trading Investment Club |
| Posted: 01 Aug 2020 04:29 AM PDT
 | ||
| When I buy shares who gets the money? Posted: 01 Aug 2020 07:50 AM PDT I know this is a complete newbie question, but I've never fully understood how this works. If I go into my trading app now and buy 100 shares in Microsoft I'm buying a share of that company. But who gets that money and how is it transferred? Likewise, when I sell my 100 shares, who buys them from me? Where does that money come from? My understanding is that the money goes to or from Microsoft but that doesn't fully make sense to me as it suggests that there's an unlimited pool of cash sitting somewhere in case the share price increases. For example, if I buy 1 share at $100 and then the share price increases in value to $1000 where does that additional $900 come from? What if everyone cashed out their shares over night? I appreciate that this is probably a really silly question, but any help you can provide would be appreciated. Thanks. [link] [comments]  |
| You are subscribed to email updates from Investment Club. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment