When I buy a stock, who am I buying it from?

Answers:3   |   LastUpdateAt:2012-10-14 19:35:02  

Asked at 2012-09-13 11:10:03
Say I use my E -Trade account to purchase 10 shares of AAPL . Who was owned by the actions that I just bought ? Does the E -Trade maintaining an inventory of each share , or a cyberspace makes such electronic search using ScottTrade that just put in a sell order ?
Answer1LalaAnswered at 2012-10-01 08:31:02
Jesus Gawd .. people do not even know how stocks work here . The answer is probably not buy it from a client of E -Trade , and is known as " crossing " and is legal if you do a lot of things , but the money you get from it is so small and the trouble is as large , I doubt that e-commerce orders crossings . It's possible, I suppose . MedlinePlus MedlinePlus Anyway , you buy from a market maker in AAPL . It is a person ( actually most people ) whose only job is to match orders and if there are no orders , establishes a supply and demand and the sale of its inventory .
Answer2azenetteAnswered at 2012-10-13 08:39:03
Chances are that you are buying the market maker in AAPL shares as it is traded on NASDAQ . Unless eTrade routes your order to a secondary exchange , which is possible , but not likely. MedlinePlus MedlinePlus The NYSE and NASDAQ work otherwise. MedlinePlus MedlinePlus JoeyV : what do you expect? Is Yahoo! Answers .
Answer3isismarieAnswered at 2012-10-14 19:34:02
Chances are you are buying from someone who wanted to sell , which also has an E -Trade account . MedlinePlus MedlinePlus And yes JoeyV , discount brokers try to cross orders as much as possible , so you dont have to pay market makers . Also, the New York Stock Exchange is the only exchange that still uses market makers . The rest are central reservation systems like the NASDAQ .
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