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1. the stock market, other than the IPO is a secondary market. You are not providing capital to the company but just paying another trader for his shares. 2. T

1. the stock market, other than the IPO is a secondary market. You are not providing capital to the company but just paying another trader for his shares. 2. The majority of stocks do not provide (and will never) dividends and the majority of buyers have no voting rights. but you are right. For practical purposes, the stock market is not pure gambling. There are institutions that make it legitimate. Such as the SEC, pensions, 401ks and brokerage firms. And the fact the government cares so much about it going up (because it funds so many pensions and social security might go away) But lets not fool ourselves in thinking the stock market is a virtuous piece of infrastructure. The vast majority of stock holders dont know anything about the conpanies they invest nor how stocks even work. They invest blindly in it through mutual funds or 401ks.

hndamien 9y ago
This isn't entirely true. If secondary market trades increase the value of the stock then the company can sell some of their stock to get more funding, or can borrow at better terms. Similarly, buying and holding Bitcoin has a range of effects that help the network and generate real wealth. Bitcoin is a services company, a payment network, a bank, and investment vehicle, a reflection of wealth in that economy, a notary, a liberated, sound money and a protest - all disguised as a get rich quick scheme.
- njarboe 9y ago
  Almost no companies today are selling stock to grow the company. Tesla is a big exception. Somehow we have gotten to a place where there is lots of capital wanting to invest in something that will make returns, but few people/companies wanting to work with large sums of capital to try new business ideas.
  - JumpCrisscross 9y ago
    > Almost no companies today are selling stock to grow the company Public market performance influences IPO performance. IPO performance directly knocks on future managements’ decisions around going public or raising a private round. The performance of those moves influences early-stage capital availability through multiple channels. Equity markets, broadly, are complicated, but they are an essential component to fuelling firm creation and growth.

hndamien 9y ago

This isn't entirely true. If secondary market trades increase the value of the stock then the company can sell some of their stock to get more funding, or can borrow at better terms. Similarly, buying and holding Bitcoin has a range of effects that help the network and generate real wealth. Bitcoin is a services company, a payment network, a bank, and investment vehicle, a reflection of wealth in that economy, a notary, a liberated, sound money and a protest - all disguised as a get rich quick scheme.

njarboe 9y ago
Almost no companies today are selling stock to grow the company. Tesla is a big exception. Somehow we have gotten to a place where there is lots of capital wanting to invest in something that will make returns, but few people/companies wanting to work with large sums of capital to try new business ideas.
- JumpCrisscross 9y ago
  > Almost no companies today are selling stock to grow the company Public market performance influences IPO performance. IPO performance directly knocks on future managements’ decisions around going public or raising a private round. The performance of those moves influences early-stage capital availability through multiple channels. Equity markets, broadly, are complicated, but they are an essential component to fuelling firm creation and growth.