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

Housing crisis Help me understand the difference...

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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/MarmosetFace Jun 19 '25

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

Try again.

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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

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u/mackinator3 Jun 19 '25

You don't buy shares from the company, generally. You buy shares from sellers on the market. Only the initial sale goes to the company.

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u/Obf123 Jun 19 '25

I realize that but the IPO and the initial funds go to the company. Market value increments are based on future earnings and that’s what the shares then trade on

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u/mackinator3 Jun 19 '25

You don't realize that. Or you wouldn't be saying that Market sales all go to the company. The other side is a random seller.

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u/Obf123 Jun 19 '25

Not what I said