1
$\begingroup$

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?

Thanks.

$\endgroup$

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.