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> Investing in stocks does provide jobs and income to others. When you buy stocks, the money goes to finance the business. could somebody expand on this please
by MuffinFlavored 4y ago
> Investing in stocks does provide jobs and income to others. When you buy stocks, the money goes to finance the business.
could somebody expand on this please? as far as I understood it, companies like Apple don’t issue shares very often. How does the share price going up go to their business unless they issue more shares (diluting existing shareholders)?
- toast0 4y agoDoesn't Apple use stock based compensation and doesn't that involve issuing stock?
- WalterBright 4y agoI don't know what Apple does. Of course, Apple could buy it on the market and hand it to people to exercise their options. But the usual thing is the company creates the stock and hands it out.
- zeusk 4y agoEvery company maintains a treasury of stock; SBC comes out of that but it is indeed newly issued shares that dilute the holdings. However, with Apple and similar companies - they buyback A LOT more of the stock than they issue in SBC.