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I'm confused by this statement. If I buy shares from a company, that company has more money to spend on growth/bonuses/whatever. If I buy shares from another pe

I'm confused by this statement. If I buy shares from a company, that company has more money to spend on growth/bonuses/whatever. If I buy shares from another person, that person has money to do things with. I don't see how there is even a thing such as "parked in shares of a company"; it doesn't park there, it is immediately available for investing in other things. Now, the money could sit in the bank, sure. But even then, the vast majority of the money "in the bank" is actually being lent out to other people, who spend it. So unless the money is literally sitting in a vault, it's not "parked" anywhere. I'm very open to being corrected here, so feel free to do so. My understanding of economics is decidedly limited.

SoftTalker 4y ago
Yes, so many people seem to think that billionaires are some living version of Scrooge McDuck, and their wealth is vaults full of gold coins under their houses, and they swim around in the coins before breakfast every morning.
- saurik 4y ago
  Even then: if you take money and squirrel it away long enough in a vault then the market is essentially going to price in whether it thinks you are likely to spend it in the near future and effectively deflate the currency a bit to give everyone more buying power... like, imagine if you instead took money and literally burned it in a fire, and then try to figure out the statistical difference on supply and demand over the next five to ten years between money burned in a fire and money whose primary purpose is as a trophy swimming pool for an aging duck.