How does money go from my pocket, through the stock market, and to support the business I've bought stock from?

When you buy stock in a company , you are essentially bu ying a small ownership st ake in that company . The money you pay for the stock goes to the company , and in exchange , you become a share holder . \n \n As a share holder , you are entitled to a portion of the company ' s prof its , as well as the right to vote on certain matters related to the company ' s operations . If the company makes a profit , it may choose to dist ribute some of those prof its to its share hold ers in the form of divid ends . \n \n The stock market is where stock s are bought and sold by invest ors . When you buy stock , you are bu ying it from another invest or who is s elling it , rather than from the company itself . The stock market provides a platform for invest ors to buy and sell stock s , and it plays a role in setting the price of stock s based on supply and demand . \n \n When a company ra ises money by s elling stock s , it can use that money to invest in its business , pay off deb ts , or for other purposes . In this way , the money you pay for the stock you buy can ultimately support the business and help it grow . </s>