It's more general than that. You can buy and sell stock risks like any other commodity. An investor who's confident in a company, or who knows they're investing for the long term, can take on more risk, and get a higher rate of return (on average). A pension fund that's coming up to redemption time can stabilize its value, accepting a lower growth rate in return for reduced risk. It's not just the businesses themselves, it's anyone for whom the stock price matters.