Re:Just Be Rich
by chii on Tuesday April 13, 2021 @05:40AM
(#26790088)
> Buying existing housing isn't an investment....Buying an existing company isn't an investment.
yes it is - because the person you're buying it from now can invest the proceeds of that sale (to something else).
Buying shares off the sharemarket is investing - not because you're directly giving the company your money, but because your buying is the end of a chain of investment that directly leads to the IPO at the other end. Same with housing.
Your way of seeing only direct investment as "true" investment is too shallow, and lacks the actual nuance of how the financial markets operate. If you sell your shares to somebody else after an IPO, the IPO might not ever have happened, or that the raising of money costs more (to account for the risk of having to hold the bag till the company profits). By strata-ing the risk out to different people, the financial market allows all levels of risk to be bought, by all manner of different people.
The direct "investment only" method is as primitive as bartering for goods/services.
yes it is - because the person you're buying it from now can invest the proceeds of that sale (to something else).
Buying shares off the sharemarket is investing - not because you're directly giving the company your money, but because your buying is the end of a chain of investment that directly leads to the IPO at the other end. Same with housing.
Your way of seeing only direct investment as "true" investment is too shallow, and lacks the actual nuance of how the financial markets operate. If you sell your shares to somebody else after an IPO, the IPO might not ever have happened, or that the raising of money costs more (to account for the risk of having to hold the bag till the company profits). By strata-ing the risk out to different people, the financial market allows all levels of risk to be bought, by all manner of different people.
The direct "investment only" method is as primitive as bartering for goods/services.