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That's how it looks to you, but stock markets weren't meant to be betting houses. > You are not giving them money to spend on things with a payoff. how so?
by return0 13y ago
That's how it looks to you, but stock markets weren't meant to be betting houses.
> You are not giving them money to spend on things with a payoff.
how so?
- gsw2 13y agoI believe the parent comment was meant to point out that buying shares on the secondary market does not transfer any money to the company, but instead transfers money to current(or future) stock holders looking to sell(or sell short) their long position. The company would have already received money from the sale of its stock to primary dealers during the IPO ... so for the most part, all subsequent transactions in the market are between investors/speculators.