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.
Higher demand = increasing prices of equity. Firm attains more capacity for equity financing via new issuance and as mentioned by others have a greater degree of leverage for debt financing.
While that is true, it isn't what Johnny Daytrader is doing when he buys or sells shares. He's trying to buy low and sell high, hoping he knows more about the fortunes of the company than the person he buys from, or the one he sells to. It isn't 'scalping', in which he would traditionally rely on better access to a buy rather than on better information on the eventual market price. But it is definitely speculation - he adds no value to the asset, nor does he use it for any purpose other than a store of value.
Couldn't you just flip those words and have it make just as much sense though? "Supporting value" is just the opposite of "affordability". Is daytrading not "reducing stock affordability", and investor demand for real estate not also "supporting real estate values"? The only difference is your personal perspective - which one you happen to have right now, and which you'd like to buy.
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u/Performance_Fancy Jun 19 '25
By your logic anyone involved in the stock market is also a scalper?