Buying and Selling of shares in the Stock Exchange - money management

[correspondent24]

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I just want to ask where my money will go once I purchased a stock from a certain public company.

Example.

I'm using BPITrade or Citisec to do my trading for me. Once I bought shares from, say SM how will my money be handled? Will it go directly to SM? or magsangit-sangit pa na ug asa nga mga system? Then if mag sell pud ko will SM pay for the shares that I have just sold? or naay someone behind sa system nga nagmagic magic nagconvert sa akong data into paper money para i credit niya sa akong banko?

Naay maka explain sa pamaagi sa aning buying and selling of shares?

[snowleopard]

the broker will handle everything. what you just need to do is fund your account, pick stocks to buy, and plan when you want to sell and request payment for your gain (requesting how payment for your gains is dependent by broker)

[MK]

its a zero sum game
if you buy SM stock, someone is selling it to you - he gets the money, you get the stock share.
same when you sell your SM stock, - someone (individual like you or institution) is buying it from you...they pay and you get the money. SM will not get a penny from those transaction....indirectly, that is. Kay if it happens that those buying transaction push the price up, then it will have effect sa ila company common share na they will benefit bisan wala cla kadawat sa money na imo gibayad sa share...

mao na na if you happen to buy a stock na gamay lang namalit or wala share holder na actively trading it, naa time it takes weeks to sell hehe

of course, all the money transactions will be handled by your broker.
naa mas lawom explanation pero simple is better hehe.

[correspondent24]

its a zero sum game
if you buy SM stock, someone is selling it to you - he gets the money, you get the stock share.
same when you sell your SM stock, - someone (individual like you or institution) is buying it from you...they pay and you get the money. SM will not get a penny from those transaction....indirectly, that is. Kay if it happens that those buying transaction push the price up, then it will have effect sa ila company common share na they will benefit bisan wala cla kadawat sa money na imo gibayad sa share...

mao na na if you happen to buy a stock na gamay lang namalit or wala share holder na actively trading it, naa time it takes weeks to sell hehe

of course, all the money transactions will be handled by your broker.
naa mas lawom explanation pero simple is better hehe.

Mao ba bro? So you mean to say that SM will not receive my money? And that I am buying it from someone else?

[MK]

yup...gawas kun during IPO...or ga buyback share ang company or additional listing.

[lodyl]

its a zero sum game
mao na na if you happen to buy a stock na gamay lang namalit or wala share holder na actively trading it, naa time it takes weeks to sell hehe

Nge... a week bai? what if for example ni sell ka ug stock sa CompanyXXX let's say today at P10.00 then after a week kay P5.00, di ba LUGI ka ana?

[correspondent24]

yup...gawas kun during IPO...or ga buyback share ang company or additional listing.

Additional listing is still a PO right? Can I still consider myself a part owner of SM if I bought there stock on a secondary market?

Nge... a week bai? what if for example ni sell ka ug stock sa CompanyXXX let's say today at P10.00 then after a week kay P5.00, di ba LUGI ka ana?

Yup, lugi naka bro.
We might want to avoid talking about losses and gains in the stock market here, para dili maclose ang thread. I just want to know how the money is handled once I bought and sold a stock.

[snowleopard]

Mao ba bro? So you mean to say that SM will not receive my money? And that I am buying it from someone else?

that is why naa PSE and the broker.

OT: unta maka-buy ta SM share sa mall mismo, murag shopping style, then comeback and do over the counter selling pud. hehe

[MK]

Nge... a week bai? what if for example ni sell ka ug stock sa CompanyXXX let's say today at P10.00 then after a week kay P5.00, di ba LUGI ka ana?

hehe I'm just exaggerating...but that still hold true if you intend to sell the stock at a certain target...
if you are willing to sell it at market or a bit below market value then most likely dali ra like minutes or hour.

Pero don't worry bay few ra kaayo na during bullish market
only risk is during bear market kay ga march down ang prices...

There is always risk, mao na na familiarize gyud usa about stock market before pouring a lot of your hard earned money

[MK]

Additional listing is still a PO right? Can I still consider myself a part owner of SM if I bought there stock on a secondary market?

Additional listing of common share sa secondary market then dili na na PO...
Pero owner gihapon ka...