4 ms·
If you're buying stocks (outside of an IPO), you're not actually providing capital to a company though? You're just buying the shares from someone else & somewh
by SifJar 7y ago
If you're buying stocks (outside of an IPO), you're not actually providing capital to a company though? You're just buying the shares from someone else & somewhere back in the chain of ownership, someone provided capital to the company.
- icebraining 7y agoYou're paying off the early investors who funded that company, making similar investments more attractive. Plus many companies do raise money by issuing new stock after IPO, or buy other companies with their own shares, and so a higher stock price benefits them, even if you don't buy those particular shares.