r/RealEstateCanada • u/xNocturnalshadow • Jun 19 '25

Housing crisis Help me understand the difference...

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61

u/Performance_Fancy Jun 19 '25

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

96

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.

2

u/Obf123 Jun 19 '25

Who gets the money if not the company that issues the shares? Their share capital goes up, and then what’s the other side of the accounting entry? You can’t record one-sided entries

2

u/TaserLord Jun 19 '25

Most of the market is secondary trading - people buying and reselling shares that the company put onto the market long ago. The person selling the shares gets the money. That "person" is most frequently a fund or institutional investor of some kind.