Can someone explain a concept from XSS?

Hey Folks,

As the title suggests, I'm a little stuck on an aspect of cross-site-scripting.
I understand that it may be done by inserting script tags to the page to run Javascript to capture data and other stuff.
What I don't get is how this affects other users on other browsers. I understand that you can insert code which will send other users' cookies and such to your own server and gain access to websites that way. Do these scripts get passed to the server somehow? My understanding of manipulating webpages through the browser is that it only affects content locally.

I appreciate any insight you can provide.

Cheers. :)

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