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How does buying stocks actually help a company when every trader seeks to eventually sell at a higher price?
11-27-2012, 06:50 AM
Post: #4
Philip Offline
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Stocks generate immediate income to the company when the company sells the shared in the primary market. As when an investment bank purchases the shares and turns around and sells those shares in the secondary market to individual investors. When there are more buyers than Sellers for those shares in the secondary market, the price will be bid up and up and up creating more equity for the company and consequently for the shareholders.
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Messages In This Thread
[] - David - 11-27-2012, 06:50 AM
[] - I Like Turtles - 11-27-2012, 06:50 AM
[] - Philip - 11-27-2012 06:50 AM
[] - Rusty Plastic - 11-27-2012, 06:50 AM

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