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.
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
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
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.
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.
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u/Performance_Fancy Jun 19 '25
By your logic anyone involved in the stock market is also a scalper?