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How does buying $500k worth of stock ("investing the money") stimulate the economy? Haven't I just purchased a paper asset from the seller? I guess you could ar
by ForHackernews 8y ago
How does buying $500k worth of stock ("investing the money") stimulate the economy? Haven't I just purchased a paper asset from the seller? I guess you could argue that the seller who liquidated their position is now free to spend that cash on something productive.
- formercoder 8y agoThat’s the argument for buybacks and dividends. If companies don’t have any NPV positive projects to take then the cash must go out to shareholders who do.
- C1sc0cat 8y agoAside from the fact that companies need investors there is also the question of investing in IPO's etc.