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> when money lies in stocks and bonds, it is invested in the real world. Is it though? How much did Nvidia invest more, after their stock hikes? How about Tesl
by mqus 2y ago
> when money lies in stocks and bonds, it is invested in the real world.
Is it though? How much did Nvidia invest more, after their stock hikes? How about Tesla, Microsoft, Apple? No. They cut their staff or maybe stayed at their current investment levels.
- yorwba 2y agoYou have the ordering of events inverted. Companies do not automatically have more money to invest after their stock price rises, because the stock is traded between unrelated third parties. Rather, the stock price rises after the company made investments that paid off, increasing the company's expected future profit. This then retroactively provides the incentive for people to give money directly to companies to invest in exchange for partial ownership. So the question you should be asking is: How much did Nvidia invest before their stock hikes? And which companies will the original investors fund next after selling their shares at a profit?