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A comment on A “short squeeze” sounds innocuous enough.... Parent comment

Re:A “short squeeze” sounds innocuous enough... by eli on Thursday January 08, 2009 @05:26PM (#425772)
I see what you're saying, but I don't perceive a meaningful difference between those two classes beyond, perhaps, what's in the investor's head.

In both cases you're investing money in a company because you think the value of that company is likely to rise in the future. And in both cases the company benefits from that investment.

I agree that many investors are too focused on the short-term... but if they think they can make more money by selling a stock and reinvesting elsewhere rather than holding onto it for years, can you really blame them? The whole point of investing is to make a return on your principal.

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Re:A “short squeeze” sounds innocuous enough... by markessien on Friday January 09, 2009 @01:11AM (#426297)
A company sells 1000 shares. All get sold. Any further rrselling of those shares aka the stock market does not benefit the company.
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Re:A “short squeeze” sounds innocuous enough... by eru on Friday January 09, 2009 @08:29AM (#426553)
At least not directly. E.g. it's easier to sell more stock or sell a bond with a healthy stock price.

Viewed another way, the stock _is_ the company.

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