ABC's economic activity caused their share price to increase.If I bought shares of ABC Corp years ago on the market, and now sell for big gain, how did my investment generate economic activity? How did ABC benefit? ABC didn't get any money from me, they got it from the IPO investor.
Their employees got paid and got raises and bonuses. Additional people were hired. The local middle school baseball team had a sponsor.
You took a risk and got compensated for that risk. You now have more money, generating taxes and giving you money to spend / donate / gift.
Statistics: Posted by exodusNH — Fri Apr 26, 2024 7:19 am — Replies 2 — Views 118