Thursday, June 15, 2006

Money flows into and out of the stock market

Does money flow into or out of the stock market (the secondary market)? Don’t dollars of stock purchased always equals dollars of stock sold? So, how can there be a net dollar flow into or out of the stock market?

2 comments:

Anonymous said...

I give up? New stocks & inflation?

TOG said...

New stocks, yes. Those are traded in what is called the primary market.

The secondary market is the trading in shares already issued.