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    wallbanger's Avatar
    wallbanger Posts: 3, Reputation: 1
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    #1

    Apr 9, 2009, 04:21 PM
    Who gets the funds from a stock purchase?
    When I buy common stock from a broker how is the money distributed and where does it go... what does the company do with its share?

    Wallbanger
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Apr 9, 2009, 04:27 PM

    The cost of the stock goes to the owner of the stock, less the commission paid to the broker.

    The company that issued the stock, may get nothing from the sale it unless they sold the shares.
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