ELi5: Why would someome buy stocks from a share holder of a company, instead of using that money to invest in the company themselves?
In: Economics
Because if you just write a check to a company, they might give you a thank you letter and that’s it – at the end of the day you don’t have anything to show for your investment in the company.
When you buy a stock, you’re actually buying some level of ownership in the company, which has *some* value to it – the company might pay dividends to shareholders, or it might strike it super rich and in turn the value of the stock could shoot up, and then you sell it for money.
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