Do inter-dealer transactions increase the trade volume when I buy shares?

External question — Personal Finance Stack Exchange Author: Flux Original post: https://money.stackexchange.com/questions/129634 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. When I buy 100 shares, does the trade volume increase by exactly 100 shares? Suppose there are 4 entities involved in a transaction: me, my broker, dealer A, and dealer B. When I place an order to buy 100 shares, my broker contacts dealer A. Suppose dealer A does not have any shares in stock. Dealer A buys 100 shares from dealer B. Then, dealer A sells 100 shares to me via my broker. As you can see, there were two transactions of 100 shares each. Did this whole process increase the volume by 100 shares or 200 shares? (Answers need not be specific to the US, but if this is a region-specific issue, feel free to answer about the US stock market)

External answer — Personal Finance Stack Exchange Author: Dheer Original post: https://money.stackexchange.com/a/129643 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. In modern stock exchange there is no dealer A and B. You place your order via broker and it matches to the order placed by other parties via their broker. So there is a single transaction of 100 shares

External answer — Personal Finance Stack Exchange Author: TomTom Original post: https://money.stackexchange.com/a/129645 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Suppose there are 4 entities involved in a transaction: me, my broker, dealer A, and dealer B. That is a wrong assumption. The BROKER is not involved in the transaction - it is merely handling the paperwork and holding the shares in your name. The transaction is between you and the other side, totalling 100 shares. Why do you assume 2 dealers? EVERY transaction has ONE buyer (or seller) and the other side has as many participants as are needed to fill the order (in case of large orders). Dealer A buys 100 shares from dealer B. Then, dealer A sells 100 shares to me via my broker. This is not how it works. Your broker pushes the order on the exchange where A counterparty picks it up. Why would you assume a dealer buying from ANOTHER dealer?

External answer — Personal Finance Stack Exchange Author: kurtosis Original post: https://money.stackexchange.com/a/129649 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. If you buy from a market maker and they do not have the shares in their inventory, the volume will increase by a multiple of your trade size. These examples provided by Nasdaq illustrate this and how volume gets counted.