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The money doesn't get "parked" in stocks. It's sent to a company, that will use it. Anyway, the idea is approximately right. When there's more money on the eco
by marcosdumay 2y ago
The money doesn't get "parked" in stocks. It's sent to a company, that will use it.
Anyway, the idea is approximately right. When there's more money on the economy than stuff to buy, you get inflation, and the extra money gets places to go. Alternatively, yes, the amount of money and the number of time it transacts both change all the time.
- criddell 2y ago> It's sent to a company, that will use it. So if I sell a share of Microsoft and you end up buying it, market makers get some of that and your broker might too, but I would get most of the money.