Take the 2-minute tour ×  For every buyer, there is a seller.
Money can't 'flow' in and out of a stock, only the price
changes. Is this applicable in the context of asset classes, for
example, money market funds versus stocks? If a portfolio
manager sells stocks and buys a money market fund, then wouldn't
it mean that money 'flows out of stocks'? Or does the same logic
apply, that is, since someone bought the stocks from the
portfolio manager, there is technically the same amount of money
in the stocks?  If this is true and money flow is impossible
unless it is an IPO, then why is money flow cited and considered
relevant, everywhere?  share|improve this question My
understanding is that a well-run flow trading desk can provide
information that can benefit traders. However, not everyone is
able to take advantage of that information. –  John Oct 6 '12 at
5:24 add comment  2 Answers  Correct. All outstanding issues are
held. Money only flows into an asset class via the primary
market (such as an IPO, secondary o