Who pays a shareholder money when they cash in shares?

Who pays a shareholder money when they cash in shares? For example, if I am trying to sell back 10 shares of "company x" for $50 that I originally bought for $40, who gives me the $40 plus the difference that I earned when I am cashing out? Does "company x" have to pay the $50 a share that I am cashing out? Or does someone else in the market who wants my shares buy them from me. If someone else buys my shares, then wouldn't the price of the stock be irrelevant to "company x" once it makes its money from its IPO?

 

The shares are sold to someone else in the marketplace who is buying at that time. The share price is relevant after an IPO because the company may seek to raise additional equity by selling more shares if management feels it is currently overvalued. Additionally, compensation for management will include a significant proportion of shares or options, aligning their goals with those of shareholders.

 

Lol when I saw the title to this post I thought it was a joke.......If you buy a house for 100K and its now worth 200K when you SELL IT TO SOMEONE ELSE, who give your the 200K..........the buyer.

You give me a gift? *BAM* Thank you note! You invite me somewhere? *POW* RSVP! You do me a favor? *WHAM* Favor returned! Do not test my politeness.
 

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