4 ms·
I 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
by gsw2 13y ago
I 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.