After selling your stock what happens?

Question

When you buy and sell your stock....how do you collect the money? Sorry if it sounds like a dumb question....I'm very new to the stock market and am too busy to read big library books.

Answer 1

The proceeds of the sale simply appears as an increase in the cash balance of the brokerage account.

Example:
ZERO Cash Balance
$1000 Stock Equity Balance

Sell the $1000 worth of Stock>>>>

$1000 Cash Balance(less Trading Commision expenses)
ZERO Stock Equity Balance

Or,,Sell 1/2 the Stock,,,$500 Worth
$500 Cash Balance(The Cash Proceeds from the Sale)
$500 Stock Equity Balance(The Value of the Remaining Stock still Owned)


If You want the Cash in Your Hands,,,
You must instruct your Broker to send you a Check for whatever amount from your Cash Balance.

Also understand that there is "Clearing Time" for a Sale,,,3 Days before the actual Cash is in your account.
Therefore if you sold Stock TODAY,,there's a "3 day waiting period" before the broker will send you a check.

Answer 2

Then go to the library and start with a little book. It's hard enough to do well when you know what you are doing. Pick up a copy of the "Barons Dictionary of Finance and Investment Terms" - it's a pocket sized book - about $10 in any book store.

Many years ago, you would have been issued stock certificates. That is rarely done today. Instead, you own the stock in an account with a broker. When you sell the stock, you can leave the proceeds in the account in order to make further investment purchases or you can have some or all of the proceeds of the sale sent you in the form of a check. Whenever you buy and sell stock there is a three day period for the trade to "settle". You can buy stock from your broker today as long as you can submit payment within 3 days after the trade. Likewise when you sell, the proceeds are deposited into your account 3 days after the trade. Other types of investments have different "settlement" periods - typically less - for IPO's, mutual funds, and options it is same day settlement.

Answer 3

Stock trades take three business days to settle (ie, you don't get the money until three business days after you place the trade), so first thing is that you need to wait three business days (weekends and holidays don't count as a business day). After that, the money should be in your account, and it should be just a matter of asking your broker to send it to you. For the most part, if buying, its a good idea to have the money in the account before you purchase the stock. A lot of online brokers won't let you buy a stock without having the money in the account first.

Answer 4

First you have to have a brokerage account set up and funded to purchase the stock. Say you buy 100 shares of HON at $40. $4000 + the brokerage fees (about $10) will be deducted from your account. Say you sell the stock next month at $45. Your account will be credited with $100*45=$4500 (again minus about $10) for the broker.

Answer 5

Why don't you buy 10 shares of Yahoo! and sell them a minute later?

Answer 6

The money gets transferred first to your brokerage, then to your account at the brokerage.