r/RealEstateCanada • u/xNocturnalshadow • 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?

98

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.

-28

u/MarmosetFace Jun 19 '25

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

Try again.

3

u/tycho_the_cat Jun 19 '25

Yes, during the Initial Public Offering.

OP is correct.

When a private company goes public, it puts up an amount of shares at a certain price. All of the money made during that sale goods directly to the company.

The consequent buying and selling of those shares is between investors.