In stock market, first the money goes to company who issues it (IPO), there's no real deposit of money in the market right?
Like wall street the only things they have is list of stocks, list of who owns by how much?
All the money goes to investor, when the stocks change hands?
10 pts. for good or detailed answer
2007-02-11 23:56:25 · 4 answers · asked by Doo.ri 3 in Business & Finance ➔ Investing
for the most part, yes, you are right. For IPO, the company & owners get most of the money. You are leaving out the important folks like the bankers that made all this happen. They get fees on bringing the company public.
Wall street: the brokerage companies have buyers & sellers & charge a fee to each one. Any profit or loss goes to the seller.
2007-02-12 06:37:35 · answer #1 · answered by ricks 5 · 0⤊ 0⤋
IPO's or (initial Public Offerings) are used when a company is just begging to release it holdings in the market. A low IPO value on a company stock could net you a huge net profit if it is well received in the market. If the company has a good history and a good PR dept and have done their research and advertising properly, and the word hasn't hit the street about the IPO till the day it happens, this is usually a good bet. HOWEVER I STRONGLY caution you, not to put you life savings into this, It's possible that it will open slow or strong but close less then the opening bid, this my Friend would result in disaster for you. So if you have some investment capital, and some big kahunas you can make an attempt, but be careful this dog bite hard!
2016-05-24 00:29:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most of the money goes to the issuing company. The investment banks that underwrite the offering get something in fees and price gains. The company does care about its stock price if they make a secondary offering or use their stock to buy another company. When stocks change hands the brokers make money from commissions and the bid-ask spread.
2007-02-12 00:07:42 · answer #3 · answered by Tim C 1 · 1⤊ 0⤋
If you want to buy a stock you have to deposit your REAL CASH in a REAL BANK.
From there you can move it to your brokerage account and if you buy a stock your money moves to somebody else's brokerage account.
2007-02-12 04:29:49 · answer #4 · answered by Anonymous · 0⤊ 1⤋