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To: TexasFreeper2009
those funds “are” spent on stuff... stocks!

Agreed. If you are XYZ manufacturing company, would you rather have people buying your stock or buying your product? Depends on a number of factors.

142 posted on 10/20/2017 11:48:05 AM PDT by kjam22 (America need forgiveness from God)
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To: kjam22

Had to think about that. I’d rather they bought my products.

It’s unusual to get a direct placement of stocks from the company to the investors. Most often, stocks are bought on the market, from other stockholders. If the price is driven high enough, it can increase the company’s capitalization value, but an individual investor buying stocks has little effect on price.

As a company, I probably make more money on product sales once the initial stock offering is over, because I make nothing whatever when stocks trade hands individual seller-to-buyer.


144 posted on 10/20/2017 11:56:16 AM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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