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> In the stock market, the money you invest into a company is used to pay for workers, equipment, etc that generates more dividends. Only if you invest in the
by giantrobot 4y ago
> In the stock market, the money you invest into a company is used to pay for workers, equipment, etc that generates more dividends.
Only if you invest in the IPO or later stock offerings directly from a company. Otherwise you're just buying in the secondary market and no part of the price you pay goes to the company.
- XorNot 4y agoShares represent voting control in the companies decisions. Even the existence of non-voting shares is still a message about expectations of future profitability - i.e. a companies ability to issue additional stock profitably depends on expectations about the value and future value of presently held stock...which in turn is a signal about confidence in the company's direction, profitability etc.
- jboy55 4y agoWhen you get into non-voting shares, you move closer and closer to "corporate branded" crypto. We'll see when a major company with a lot of non-voting shares really struggles and gets acquired at a discount or moved private, how much value is given to the non-voting shareholders.
- jevgeni 4y agoYou're confusing funding and cash flow. Funding is invested in value generating assets. Just because the money is spent doesn't mean the asset (like a conveyor belt) evaporates. It's essentially the equity holders allowing the firm to use their stuff. Which is an ongoing thing.
- deleted 4y ago[deleted]