Obama's Most Dangerous Tax Hike: Savings and Investments

Townhall.com ^ | December 2, 2012 | Kevin Glass

[BfloGuy]

The stock buyer and the stock seller are just trading paper (money and stock). After the IPO, none of these subsequent transactions produce any funds for the issuing company.

A company's market capitalization dramatically affects its ability to borrow and attract new investors through additional stock offerings. The stock market really is more than a gambling casino -- companies live and die by its decisions.

[Tau Food]

Of course, a company’s market capitalization dramatically affects its ability to borrow and attract capital, but an increase (or decrease) in the volume of transactions in its stock does not imply an increase (or decrease) in the company’s market capitalization. A tax policy which might increase the volume of transactions in a stock will not necessarily raise or lower a company’s market capitalization. High volume can accompany both increases and decreases in a stock price.

[BfloGuy]

A tax policy which might increase the volume of transactions in a stock will not necessarily raise or lower a company’s market capitalization. High volume can accompany both increases and decreases in a stock price.

I didn't say anything about high volume. High volume is more a product of monetary inflation. In my opinion, it has little to do with tax policy.