I want to understand better cash flow of stock market and it's participants, but could not find any reasonable information online, hope more experienced people here could help.

Money IN flow:

  • (1)investors, hedge funds, investing banks, pension fund etc... anyone who invests/speculates on stock price
  • (2)companies paying dividends on their shares
  • (3)acquisition. When someone decides to buy public trading company they will return full cost to the market/shareholders.
  • (4)stock buyback

Money OUT flow:

  • (5)IPO. On time off outflow.
  • (6)share dilution.
  • (7)brokers, market makers, stock exchange support etc..
  • (8)speculative profit for category (1)

I hope I did not forget any, please let me know if I did. Now we know there should be balance and inflow should be equal to outflow on long term. The question here - is (2) - (4) enough to cover income for (5) - (8)? I don't have statistical information but my guess would be no, does it mean that category (1) is constantly loosing money?



Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.