Originally Posted By: Kanektok Kid
Originally Posted By: Lead Bouncer

That fact is, when you buy stock in a bank or insurance company, they can turn around an put that money to work.


If you buy the stock in an IPO, or do some form of a DRIP I suppose. Once the company issues a stock, the sales in the secondary market (vast majority of transactions)and profits/losses do not go to the issuing entity, but to the 'selling entity'

Most stocks are purchased from brokers, 'that money' goes to....................the broker, not the corporation.

When you sell a stock,(outside of a company 'buy back' program) you don't sell it back to the company, it is sold on an open market.


True. Additional shares being offered still falls under the ipo, otherwise, the shares I buy were owned by another private investor. (selling entity).