> public shareholders do not actually invest in the productive assets of corporations, because most purchase shares from other shareholders, and the capital “in

> public shareholders do not actually invest in the productive assets of corporations, because most purchase shares from other shareholders, and the capital “invested” never actually reaches the corporation. Oh, not this argument again. How much less willing would the initial investors be to invest if they knew no one would ever buy their shares from them? Secondary share purchases are absolutely part of the overall investing ecosystem, just as secondary house purchases support the initial sales of (and therefore the building of) houses.