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How? Buying stock doesn't transfer any money to the company (unless it's newly issued stock)
by umanwizard 9y ago
How? Buying stock doesn't transfer any money to the company (unless it's newly issued stock)
- jsfitzsimmons 9y agoThe act of buying stock signals demand and reduces supply, which will effectively cause the price to rise. Indirectly, rising stock prices are a positive indicator for the health of the company. Directly, if the company chooses to sell stock, it will be able to sell it at the higher price.
- deleted 9y ago[deleted]