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/biz/ - Business & Finance

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16942775 No.16942775 [Reply] [Original]

Why do people talk about money flowing to/from stocks? For someone to buy someone else must sell. There is always balance. The only thing that changes is how people value the stocks. So, tell me /biz/, why do people talk about money flowing to stocks?

>> No.16942796

>So, tell me /biz/, why do people talk about money flowing to stocks?
cause they regurgitate whatever they see/read on msm

>> No.16942890

>>16942775
Because stock is issued by a company in order to raise capital from the stock market. It’s not just numbers that go up and down for gambling, believe it or not.

>> No.16942912

>>16942775
Because that "someone" can be the company itself. When the value of its shares increases, it's easier for the company to raise money.

The stock market can be thought of as a machine to turn speculation into productive investment. It's generally pretty effective at that.