Comment by t0mpr1c3
18 hours ago
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