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Buyer pays $100 from money market to stock seller, Michael Kantro explains

Buyer pays $100 from money market to stock seller, Michael Kantro explains
Money movement in stock trades explained

Michael Kantro poses a question about the flow of funds in a stock transaction. He asks where the $100 goes when withdrawn from a money market account to buy a stock and paid to the seller.

The tweet highlights the process in which money leaves the buyer's account and is transferred to the seller upon completing a stock purchase.

Kantro has frequently commented on the relationship between market signals and central bank actions. In a recent post, he said that market indicators are providing stronger inflation signals than the Federal Reserve. He also expects 10-year U.S. Treasury yields to decline further, citing a disconnect between the Fed and the market.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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