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I mean a good stock market makes it easier for companies to raise funds and thus to expand and employ more people. The purpose of the stock market is ultimately
by tathougies 7y ago
I mean a good stock market makes it easier for companies to raise funds and thus to expand and employ more people. The purpose of the stock market is ultimately not to provide and asset class so much as it is to ease raising large amounts of money companies need to grow.
- asdff 7y agoWhen companies raise funds, are they generally expanding and hiring these days or buying back their own stocks? Workforce have been shrinking for probably 100 years. Trickle down is fantasy.
- uerobert 7y agoWhy the hell would companies sell their stock to raise money to buy their own stock again? That doesn't make sense. If they want to do stock buybacks they just borrow money to do it, but only if interest rates are low enough. In most cases when companies raise money by selling stock you can bet its to expand, by making capital investment, raising headcount, acquisitions, etc. Either at that moment or the near future.