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If by "contribution toward our future", you mean giving money to Tesla, buying their stock in the secondary market (i.e. the "stock market") doesn't transfer an
by stygiansonic 11y ago
If by "contribution toward our future", you mean giving money to Tesla, buying their stock in the secondary market (i.e. the "stock market") doesn't transfer any money to them. You'd have to get in on the IPO or a secondary offering to have that effect.
However, supporting the existing stock price could have an effect - typically the market price influences the price of a secondary offering like this.
- masklinn 11y agoIf Tesla offers new stock, that's additional money in their pocket.
- stygiansonic 11y agoThe "secondary offering" part of my comment already covers this. It also worthwhile to note that the underwriters will take a cut/percentage of whatever goes to the issuing company.
- jameshart 11y agoThat's always been a point of confusion for me with respect to the idea of 'ethical investment funds'. Buying shares in solar companies on the market, for example, just transfers money to people who have elected to get out of owning solar. Why would it be 'ethical' to give those guys money? What if they then take that money and go invest it in oil? As you say, the market price has an influence on secondary offering prices, so it affects a company's ability to raise further funds, but buying stock secondhand seems like a fairly indirect way of supporting a company's goals. Just like if you enjoy a band's music, you don't demonstrate your support by buying second hand records...