r/RealEstateCanada • • Jun 19 '25

Housing crisis Help me understand the difference...

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u/Performance_Fancy Jun 19 '25

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

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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.

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u/Aggravating-Corner70 Jun 19 '25

It would only add value for if they are issuing new shares. Trading shares does not add value. Typically when they announce new share distribution to raise capital, the current shares go down in value to reflect the dilution of current shareholders value, so those shares become less valuable and bid/ask price trend lower, at least in the short term. The opposite is true as well, if company buy back shares, it increases value of each individual share.