• Saleh@feddit.org
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    3 months ago

    I fail how investing in “the stock market” should be more stimulating than banks handing out loans to businesses, which they do with the money people have “saved” in their accounts.

    If they talk about people buying companies when they launch into the stock market, or buying bonds issued by companies, these are precisely the markets were normal end customers should not interact. The information imbalance and risk there is much greater than with established stocks. But me buying a share of one company from another person or institution does give the company exactly zero money.

    For companies to raise money at the markets only handing out new stocks or selling bonds are direct options afaik.