Is it a loss for brokerage if an individual get profit in stock market?
（How does profit is distributed to an individual in stock market trading? For eg: i buy 100 shares 15 rupees each total 1500, i sell them when the value is 20 (total value 2000) .. So i get 500 profit, now who will give me this 500? is it brokerage or exchange? how does money flow takes place in stock market?)
Answer:
The 500 comes from the person or entity that bought the shares FROM you at 20/share.
You won’t just get the 500, you’ll get 2000 MINUS any commission the brokerage charges you so your profit will be something less than 500.
“Is it a loss for brokerage if an individual get profit in stock market?”
No. The broker makes a commission on the transaction regardless if you make a profit or suffer a loss.
Posted: July 30th, 2010 under US Stock Market.
Tags: profit in stock market, Stock market