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When you sell stock where does the money go

Conclusion. Typically, when an individual buys or sells a share of common stock on the open market, their money goes to or from the broker-dealer through whom the trade was executed.

When you sell a stock when do you get the money?

For most stock trades, settlement occurs two business days after the day the order executes, or T+2 (trade date plus two days). For example, if you were to execute an order on Monday, it would typically settle on Wednesday. For some products, such as mutual funds, settlement occurs on a different timeline.

Where does your stock go when you sell?

At a physical exchange, such as the NYSE, orders are sent to a floor broker who, in turn, brings the order to a specialist for that particular stock. The specialist facilitates the trading of a given stock and maintains a fair and orderly market.

What happens when you sell a stock?

When you sell the stock, you'll either receive a gain or a loss on your investment. The money from the sale of the stock, including your principal investment and any gains if you sold it for more, should be in your account and settled within two business days. You'll need to report sales of stock on your tax return.