Re:Are You Trading or Gambling?
by gandalfian on Saturday February 27, 2021 @08:48AM
(#26284798)
You buy a share, it goes up. You sell it to me. Share goes up more. We have both won. How? Because the company created more stuff and injected it into the equation. We can literally get more out than we put in.
[ Parent
| on HN ]
Me buying a share from you has no impact on the company. They only benefit if they can sell primary shares. A company’s ability to monetize a rising stock price is time consuming, you can’t decide tomorrow to issue $100m worth of shares and be able to sell them
No, a higher stock price (caused by the demand and transaction volume generated) is valued immediately as compensation.
If your stock goes up, employee morale is high and ppl want to stay the rest of their vesting schedule. If the stock goes down you have to compensate employees with more cash.
Also, acquisitions are made in stock deals