2 ms·
Technically, only direct stock offerings "infuse capital into a corporation". The rest (which is probably 99% of the market volume) is also just "speculation".
by rmbyrro 4y ago
Technically, only direct stock offerings "infuse capital into a corporation".
The rest (which is probably 99% of the market volume) is also just "speculation".
- twawaaay 4y agoThe stock market isn't speculation (though there is a lot of speculation on stock market -- these two sentences are not in conflict). Speculation is something that happens when you start buying and selling for reasons that are not at all connected to the performance of the company. There is a lot of useful, value-creating reasons for people to be able to sell their share they bought at initial stock offering. And think about how useful/worthwhile a share would be if you could never sell it. Remember, there isn't selling if there isn't buying. If you want to sell your share there must be somebody ready to buy from you.