I understand how they potentially benefit the individuals who buy them, but what do companies get out of selling them besides a little money just selling them?
In: Economics
Something to add here is that the buying and selling of stock we most commonly see on TV is all done in the secondary market. So a stock “price” going up doesnt benefit the company directly, outside of the initial selling of shares, called an Initial Public Offering, IPO.
However, stock prices going up will benefit the owners of the company greatly, because they now have a more valuable company on paper. And if they needed more cash for themselves, they can sell their shares to generate funds. However, there are restrictions on selling these shares if you’re an insider at the company, and you can only sell through whats called a rule 144 sale.
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