Comment by inigyou
2 days ago
Equities aren't investment in industry except when there's an IPO or SPO. The rest of the time, it's zero-sum.
2 days ago
Equities aren't investment in industry except when there's an IPO or SPO. The rest of the time, it's zero-sum.
What you just said makes no sense. How can equities come into existence except via an IPO or similar mechanism?
Equities are literally investments in business. Equity is a line in the balance sheet for every corporation.
Exactly. How can they come into existence except via an IPO or similar mechanism? At that moment, investment happens. The rest of the time, it does not. The stock market rising does not increase investment in industry. When you buy stocks at a stock exchange, you aren't investing in industry
You are saying that "investment" only happens when you provide capital to a corporation.
Presumably, under this definition, when you sell stock that is not "disinvestment".
Unless you are selling it back to the company itself. Then it is "disinvestment", because the total amount of capital provided to the corporation has gone down.
That is not what people mean by the term "investment". You need to find a different word, because "investment" has a more general meaning than the concept you are talking about.