Each time the stock of a company trades on the exchange, the company receives additional money.

Question

Quizplus · Accepted Answer

When a company's stock trades on the exchange, the money exchanged is between the buyers and sellers of the stock, and does not go directly to the company. However, the value of the company's stock may increase as a result of high demand and successful trading, which can benefit the company in the long-term.

Each Time the Stock of a Company Trades on the Exchange