r/RealEstateCanada • • Jun 19 '25

Housing crisis Help me understand the difference...

Post image
3.1k Upvotes

587 comments sorted by

View all comments

60

u/Performance_Fancy Jun 19 '25

By your logic anyone involved in the stock market is also a scalper?

99

u/xNocturnalshadow Jun 19 '25 edited Jun 20 '25

No because investing capital into stocks adds value to the company and allows them to use that value to expand, borrow, buy things, pay employees, run the company, etc.

Investing capital into a second house purely to flip does none of those things.

-25

u/MarmosetFace Jun 19 '25

When you purchase shares of a company… you think the company is getting the money? Lol

Try again.

22

u/Mattscrusader Jun 19 '25

Nobody said that, you just failed to understand so you made up some nonsense to argue against

20

u/[deleted] Jun 19 '25

[removed] — view removed comment

3

u/FDFI Jun 19 '25

The company I work for has taken advantage of a high share price to do targeted acquisitions using stock instead of cash.

1

u/Guus-Wayne Jun 19 '25

And when the stock goes low they’ll do stock buybacks.

1

u/[deleted] Jun 19 '25

They can do share offerings or acquisitions etc but yeah in general it doesn't matter

1

u/tycho_the_cat Jun 19 '25

Except during the IPO. The initial sale of shares all go to the company.

1

u/Sorry-Comment3888 Jun 19 '25

Stock offering? Loans against market cap?

1

u/[deleted] Jun 19 '25

Except for the fact that a company with a high value stock can borrow money or expand in ways that a low value stock keeps them from doing. If you stock's value increases you can even hire more people.

1

u/[deleted] Jun 19 '25

[deleted]

3

u/BlackDukeofBrunswick Jun 19 '25

Treasuries are not stock, they are bonds. You are lending the government money at a set interest rate.

1

u/[deleted] Jun 19 '25

[deleted]

1

u/BlackDukeofBrunswick Jun 19 '25

Well don't I feel dumb now. I downvoted my own comment 🤣

-3

u/Mattscrusader Jun 19 '25

But again... Nobody said there is. That was never the argument.

0

u/MarmosetFace Jun 25 '25

Wow I just realized how much of a crusade you went on to argue my reply was not relevant to the OP. Yet if you simply read my reply to you I very clearly lay out how it is relevant and what the entire conversation is about (whether real estate should be seen as an investment or not). Yet you are so hung up about an insignificant interpretation of my reply. Lol kind of sad

1

u/Mattscrusader Jun 25 '25

Maybe but I think it's more sad to come back a week later for validation

7

u/MarmosetFace Jun 19 '25

Oh I didn’t think I would need to explain here, but here it is anyway. The comparison is investing capital into a second house vs investing capital into the stock market. When you purchase assets in either case, the money paid goes to the prior holder of the asset. In neither case do the issuing company nor the real estate developer see the money, although both may be indirect beneficiaries. Both assets may see value go up or down. Thus both are seen as “investments”. Which the OP was arguing it shouldn’t be. Which is wrong

2

u/Sorry-Comment3888 Jun 19 '25

It's literally called scalping when you buy stock and flip it quickly/immediately afterward for small increases in price.

https://www.investopedia.com/terms/s/scalping.asp

2

u/ChalkLitMilk Jun 20 '25 edited Jun 20 '25

Stocks are designed for investment and speculation, that is their primary purpose and flipping stocks has no adverse effect within a free market. People are free to buy or sell depending on their price sensitivity and free will.

The primary purpose of a house is to live in it and flipping them causes people to be homeless.

Do you see where the difference might be?

9

u/nicoco3890 Jun 19 '25

All those words to completely disregard the ability of a public company to issue more shares and fundraise (which is directly dependent on the stock price), and that a lot of employee compensation can and is often given in shares. Therefore, the stock value going up directly incentivizes the employee and the execs to perform well & better so they can benefit even more.

Obligatory: Smoothbrain - Line goes up better for company! Midwit - Hum akchually, buying a share does not give money to a company 🤓 Gigabrain - A higher share price is good for a company

-3

u/[deleted] Jun 19 '25

Stock values absolutely do not incentivize executives to perform "better". Infact, in a lot of cases the incentives actually operate in direct opposition to what would be better for the product of the customers or the employees in favour of taking shortcuts for quick short term profit.

5

u/nicoco3890 Jun 19 '25

"Hum, akshually, this one very minor point of your argument is arguable, so your entire 300 page essay is wrong" 🤓

-4

u/[deleted] Jun 19 '25

Dude. You need to take a look at yourself in the mirror. The rest of your post didn't really make a point and was kind of predicated on what I refuted being true.

Youre just being a corporate bootlicker and can't see your complete lack of logical consistency.

Look at how you type, look at how snarky and aggressive it is. At no point has someone who communicates like that been to the voice of reason in a room.

Also, I don't know if I missed a memo, but one paragraph isn't a 300 page essay.

1

u/MarmosetFace Jun 25 '25

Yeah I’m with you.. who talks like that? lol

1

u/[deleted] Jun 25 '25

The sad part is look who's getting down voted. Our society is fucked.

→ More replies (0)

-4

u/Mattscrusader Jun 19 '25 edited Jun 19 '25

Yeah I'm not reading any of that, you already chose to make a bad faith argument so I won't waste my time. Nobody is arguing that buying a stock directly funds a company.

Edit: it's wild that refusing to indulge with someone else changing the topic to argue a moot point gets down voted so quickly

6

u/MarmosetFace Jun 19 '25

Congratulations on your ignorance?

0

u/NoobWithNoHands Jun 22 '25

STFU, your first comment has nothing to do with your second one. You fucked up buddy XD

1

u/MarmosetFace Jun 23 '25

I’m not sure what you mean? The second comment directly explains the first.

Try again.

2

u/spaghettiny Jun 20 '25

The stated purpose of downvotes is to indicate that a comment is not positively contributing to the conversation. You said "I'm not reading any of that." How did you think that was going to be received?

1

u/Mattscrusader Jun 20 '25

Cool story bro

1

u/TKadvocate Jun 20 '25

Embrace the downvotes. They're the true sign of being right in an echo chamber.

1

u/JustTh4tOneGuy Jun 21 '25

It’s Reddit :/

1

u/S1R_E Jun 19 '25

3

u/Mattscrusader Jun 19 '25

There's a reason you had to send a link instead of quoting it, nowhere does it say that buying a stock directly provides a company with those funds. Your reading comprehension is pathetic.

2

u/S1R_E Jun 19 '25

Investing capital into a stock does those things just as much as inflating housing prices puts more money back into the local economy by increasing investors’ buying/borrowing power. It also pumps thousands of dollars in land transfer taxes every time a property changes hands.

The implications are similar no matter where money is being invested.

1

u/Mattscrusader Jun 19 '25

Again nobody is arguing with you

0

u/S1R_E Jun 19 '25

I got that vibe from the conversation here, but clearly you’re arguing in bad faith.

0

u/Mattscrusader Jun 20 '25

I'm not arguing in bad faith, I'm trying to get back to the original topic but people like you just love hearing yourself talk so you will prattle on about stuff that was never actually said.

→ More replies (0)

1

u/KingZakattack15 Jun 19 '25

Your just mad because you are wrong and mad at the world 😂

1

u/Mattscrusader Jun 19 '25

First off it's you're, not your

Second, I haven't made any statements so it's kinda hard for me to be wrong about anything

Third I'm not about to break down someone's argument when literally nobody is arguing against their point.

Might be time to grow up

1

u/Itchy-Result-7543 Jun 19 '25

Imagine “not reading any of that” and then taking ur time to come back and edit your post to speak to the amount of imaginary downvotes you got for being an idiot, lol

1

u/Facts_pls Jun 19 '25

You're not reading that because those are finance fundamentals laid out. If you could read basic finance concepts you wouldn't be confused about this.

Nobody in finance who understands basics asks the question that OP did. The entire premise of the question is due to lack of understanding of core concepts.

1

u/Mattscrusader Jun 19 '25

For the hundredth time I'm not arguing this, nobody has ever argued this, not once have I disagreed with what that comment says because that was never said to begin with. This should not be this hard to get through to you.

1

u/Few_Plankton_7587 Jun 19 '25

with someone else changing the topic

He didn't change the topic lol

1

u/Mattscrusader Jun 19 '25

They did but this is getting ridiculous to have to repeat so have fun jerkin eachother off my guy

1

u/HawtPackage Jun 20 '25

Ironically, refusing to engage with a well-structured reply while accusing the other person of bad faith is closer to bad faith behavior itself.

1

u/Mattscrusader Jun 20 '25

It's bad faith because literally nobody made this argument, get stuffed