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You buy a share, it goes up. You sell it to me. Share goes up more. We have both won. How? Because the company created more stuff and injected it into the equat

• chrisgd 6y ago
  Me buying a share from you has no impact on the company. They only benefit if they can sell primary shares. A company’s ability to monetize a rising stock price is time consuming, you can’t decide tomorrow to issue $100m worth of shares and be able to sell them
  • gretch 6y ago
    No, a higher stock price (caused by the demand and transaction volume generated) is valued immediately as compensation. If your stock goes up, employee morale is high and ppl want to stay the rest of their vesting schedule. If the stock goes down you have to compensate employees with more cash. Also, acquisitions are made in stock deals