How is money distributed from a stock trade?
The money paid to purchase a stock goes to the seller, less the commission charged by the broker who arranged the sale and some small fees to the stock exchange where the sale took place and to the U.S. Securities and Exchange Commission. The company whose stock was involved does not share in any of the proceeds of a stock trade.
The money paid to purchase a stock goes to the seller, less the commission charged by the broker who arranged the sale and some small fees to the stock exchange where the sale took place and to the U.S. Securities and Exchange Commission. The company whose stock was involved does not share in any of the proceeds of a stock trade. (Companies only benefit from the proceeds of an Initial Public Offering* or a similar offering of their stock.
