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> Investing in typical stocks doesn't directly fund anything, you buy the stock from some other private party. No funds go to the company itself. Of course it
by belval 4y ago
> Investing in typical stocks doesn't directly fund anything, you buy the stock from some other private party. No funds go to the company itself.
Of course it does, buying a company's stock raises it's value, making it easier for a company to raise money by issuing more stocks instead of financing itself through taking on debt.
> If you believe you can predict stock market returns from demographics you should form a hedge fund.
Believing that the market is impacted by demographics does not really give you an alpha to use when investing, slower growth in the next ~30 years is just a trend.
- dehrmann 4y ago> raise money by issuing more stocks How often does this happen?
- staticman2 4y ago" Of course it does, buying a company's stock raises it's value, making it easier for a company to raise money by issuing more stocks. " Many companies are buying back stock (i.e. doing the exact opposite of this) Since the topic is intel, please explain when Intel last issued new stock and why they couldn't simply end dividends instead. (Giving money to their investors is the exact opposite of raising money). "Believing that the market is impacted by demographics does not really give you an alpha to use when investing" If you think stocks will be impacted by demographics you should be able to tell us what the correct price to earning ratio is of the S&P giving demographic a, b, or c and we should be able to trade based on that information when the S&P is mispriced. If you can't do that, your ideas are not provable or disprovable and are not particularly compelling.