Re:The stockmarket is now run by computers, algorithms and p...
by esoterica on Monday October 14, 2019 @02:24PM
(#21251231)
Companies save cash by paying employees in stock instead of cash (and saving cash is just an indirect way or raising cash, a penny saved is a penny earned etc.) Companies cannot pay employees in stock unless the employees have a way of eventually selling that stock. Employees can only sell stock because a robust secondary market exists for buying and selling stock. Therefore, the continuous trading of stock helps companies raise cash and “create value” even after the IPO.
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