Is it a loss for brokerage if an individual gets profit in stock market?

[dzire44]

How does profit is distributed to an individual in stock market trading?

For eg: If i buy 100 shares 15 rupees each -total 1500, i sell them when the value is 20 (total value 2000) .. So i get 500 profit, now who will give me this 500? is it brokerage or exchange? how does money flow takes place in stock market?

 

[bunny]

Neither the brokerage nor the exchange gives you that money. That money is given to you by the purchaser of those shares. The exchange and broker merely act as intermediaries.

 

[rajeabc]

How does profit is distributed to an individual in stock market trading?

For eg: If i buy 100 shares 15 rupees each -total 1500, i sell them when the value is 20 (total value 2000) .. So i get 500 profit, now who will give me this 500? is it brokerage or exchange? how does money flow takes place in stock market?

Neither exchange nor broker. An other investor who wants to buy the share will give you the money. But that will come to you through exchange->broker->you.
Have a look on attached fig for better understand.

 

[netman]

to add to bunny and rajeabc reply

The amount would be credited to your trading account at the broker you used to buy/sell those stocks.

 

[USA_TRADER]

No. It is a zero sum game in the stock market. For each person who gains another trader loses. However a broker always wins because he collects a commission whether you buy or sell. In severe declines such as the one we just had they actually make a lot of money because everyone is selling. Then when the market starts trending up they make money as the traders buy back into the market.

Your market probably fared better than the U S market so there would not have been as much buying and selling I would say.

USA_Trader