Re:Index Investing Makes Markets and Economies More Efficien...
by ringaroundthetx on Tuesday September 19, 2017 @01:32PM
(#15286750)
Yes and no, you buying the stock on the stock market does not give your money to the business.
Liquidity along with higher prices along with improved business metrics, which provide perception and confidence to the market to promote higher prices, are used by the business to obtain cheaper financing and the employees of the business to also obtain access to credit based on their holdings of the stock.
These are colloquially called resources to businesses.
Liquidity along with higher prices along with improved business metrics, which provide perception and confidence to the market to promote higher prices, are used by the business to obtain cheaper financing and the employees of the business to also obtain access to credit based on their holdings of the stock.
These are colloquially called resources to businesses.