We buy shares from share market. then where do this money goes ?

Question

Public buys shares from stock market of a company. where does this money goes exactly ? how share market works exactly ?

Answer 1

When you buy and pay for what you buy, the money goes to the seller, broker, stock exchange and so on for the shares and services provided!

Answer 2

If you are buying stock from a company, the money goes into the company treasury for them to use in the business.

If you are buying, not in a public offering, but on the stock market, the money goes to the previous owner, who sold you the shares.

Answer 3

The money goes to the company. It is used to finance its operations, make profit and pay dividends. The shares market is a place where you buy and sell shares.

Answer 4

Check here:

http://www.amazon.com/gp/redirect.html?i...

You will find what you like!

Good luck!

Answer 5

It goes the the person/company that SOLD the shares to you.  There are only so many shares of any given company at any given time.  You buy them from someone that already owns them.  Companies MAY sell additional shares from time to time.  In that case, the money goes the the company selling the additional shares.

Answer 6

In the initial public offering of shares, the company sells parts of itself to the public.  And this company gets the money.

But when the public continues to trade these shares later on.  Then they are simply trading between themselves.  And the company doesn't get any more money.  

But the management of the company usually continues to hold some shares of their company.  And like all shareholders, they are interested in increasing the price of their shares on the stock market.  Which they do by various means, such as by managing their company well and by putting out positive propaganda about their company in order to make traders in the stock market like their company.