Where Does the Money Go After Selling Stocks?

Stock selling refers to the process of selling shares of ownership in a company to other investors.

The first step in this process is to place a sell order for your shares through your demat account.

After your sell order is executed, your broker looks for a buyer who wants to buy the shares at the price you offered.

If your broker finds a buyer who is willing to purchase your stocks at the selling price,

the broker transfers the stocks from your demat account to the buyer’s account and receives the money in exchange.

It takes some time for the sold shares to reach the buyer’s account and  for you to receive the money. This period is known as the settlement  period,

which is usually T+2 days. This means that the money is received within 2 days of the execution of the sell order.

After the complete transaction is settled, the money you receive  after selling your stocks is credited to your broker account after  deducting the broker’s commission.

After receiving the money from selling your shares, you can transfer the  money to your bank account or use it to purchase shares of another  company.

when you sell your shares, the money goes to the buyer who purchased your shares, not to the company whose shares you sold.