2007-11-11 12:55:14 · 3 answers · asked by billtee23 1 in Business & Finance ➔ Corporations
Most of it goes to the entity that sold it.
2007-11-11 13:28:54 · answer #1 · answered by SEC NOTES 2 · 0⤊ 0⤋
100% of the sale price goes to the individual from which the share was purchased but your commission goes to your broker. If you wish to purchase a share for $100 your total cost will likely be about $110; you would give $100 to the current owner and you would give your discount broker the other $10. None of the money goes to IBM, on occasion companies will do "buy-backs" in which the company uses its money to purchase shares of its own company on the open market and then "retire" them. Essentially what happens is they can buy your share for $100 and and then tear it up. This makes everyones shares more valuable because a share represents a percentage of the company and if the company buys and destroys shares the ones that are left are now a higher percentage of the company.
2007-11-11 17:17:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
mostly, the previous owner of the share gets it.
the company only gets the money when the share was issued through a stock option, rights offering, or public offering of shares.
but ... the previous owner wouldn't have bouhgt without the right to later sell to anyone he chose ... so that right is precious.
2007-11-11 13:00:25 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋