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Much employee compensation is in the form of stock That's just transfer of stock from the company again. Corporations often issue more shares, which brings ca

Much employee compensation is in the form of stock That's just transfer of stock from the company again. Corporations often issue more shares, which brings cash onto the books. That's just transfer of stock from the company again. Corporations buy other corporations using their stock. That's just transfer of stock from the company again. Etc. If the company can give someone stock and get money (or by doing so not lose money), that's money going into more productive use. The rest is people swapping it around themselves; not fresh money going into more productive use. It seems from your arguments that companies care about their stock price going up because they have stock. They have stock and they want the initial influx of cash, when they offload it, to be as high as possible. Your arguments seem to support mine.

skookumchuck 8y ago
I pointed out 5 ways that a rising stock price puts cash in the pockets of a corporation. BTW, if you know of an econ book that espouses your theories, I'd like to read it.
- EliRivers 8y ago
  I pointed out 5 ways that a rising stock price puts cash in the pockets of a corporation. No, you did not. Your arguments rely on the company selling (or otherwise exchanging) their stock. The rising price doesn't put money in the company's pocket; selling (or otherwise exchanging or collateralising) their stock is what gives the company money. If the stock is worth more, the company gets more at that point, but a simple rise in stock price doesn't give them more money. The company gets more money when they offload their stock. After that, it's just other people swapping the stock around. As for your passive-aggressive appeal to authority... a rising stock price puts cash in the pockets of a corporation Well, you've asserted that when some private individuals trade a company's stock amongst themselves at a higher price than they did yesterday, someone gives that company some cash. That's your assertion; that if I sell some Servicemaster Global Holdings Inc stock today for more than it was traded at yesterday, somebody will give ServiceMaster some cash. Who's that somebody? Why would they give ServiceMaster some money?

skookumchuck 8y ago

I pointed out 5 ways that a rising stock price puts cash in the pockets of a corporation. BTW, if you know of an econ book that espouses your theories, I'd like to read it.

EliRivers 8y ago
I pointed out 5 ways that a rising stock price puts cash in the pockets of a corporation. No, you did not. Your arguments rely on the company selling (or otherwise exchanging) their stock. The rising price doesn't put money in the company's pocket; selling (or otherwise exchanging or collateralising) their stock is what gives the company money. If the stock is worth more, the company gets more at that point, but a simple rise in stock price doesn't give them more money. The company gets more money when they offload their stock. After that, it's just other people swapping the stock around. As for your passive-aggressive appeal to authority... a rising stock price puts cash in the pockets of a corporation Well, you've asserted that when some private individuals trade a company's stock amongst themselves at a higher price than they did yesterday, someone gives that company some cash. That's your assertion; that if I sell some Servicemaster Global Holdings Inc stock today for more than it was traded at yesterday, somebody will give ServiceMaster some cash. Who's that somebody? Why would they give ServiceMaster some money?