3 ms·
the stock market is a secondary market, so buying the shares doesn't inject capital into the company itself. I suppose you could make an argument that investin
by mxschumacher 7y ago
the stock market is a secondary market, so buying the shares doesn't inject capital into the company itself.
I suppose you could make an argument that investing in the primary market gives you more power/moral responsibility.
The extremely high valuations of Beyond meat and Tesla show you that many investors are willing to shower these companies in money.
As unbelievable amounts of capital are moving into solar and wind, it becomes marginally less attractive for additional funds to be deployed into these industries.
- pmart123 7y agoWell, it does in some ways. It makes it easier to pay employees in stock, which could be seen as an operating expense. A company could issue equity for financing at high prices like Shopify and Twilio did recently. Debt to equity is also used as a leverage characteristic.