News for hackers. Stuff that matters.

A comment on What Business is Wall Street In?. Parent comment

Re:What Business is Wall Street In? by djoldman on Friday September 21, 2012 @01:19PM (#4554663)
"It suggests the market is no longer performing its intended function of allocating capital to those companies that will use it most efficiently."

Please explain how the trading of a company's stock changes that company's capital allocation.

[ Parent | on HN ]
Re:What Business is Wall Street In? by lmm on Sunday September 23, 2012 @02:38PM (#4561653)
A company's market capitialization is its capital allocation. It's reasonably common for companies to use their own stock when making big buys (such as other companies).
[ Parent | on HN ]