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Home » QnA

When you invest in a stock, does the money you invest benefit the company you invest in in any way?

Submitted by on March 4, 2010 – 10:54 pmNo Replies


A web user asks, Aside from IPOs, it seems like when you invest in the stock market, your money is only going to other stock traders, not the company you’re investing in. Does buying a stock give any benefit to the company you’re investing in, or do stocks just change hands and the company being traded gleans no benefit?

Can you help them out? Post your advice!

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