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Reply #15: Everybody knows how this works I assume? [View All]

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dmallind Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-25-11 03:58 AM
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15. Everybody knows how this works I assume?
That buying non-IPO stocks in any company is a trade between individuals that generates exactly zero for the company? Buying shares gives money to the person who owned them previously, and a bit to the broker in between, not Toyota. All buying shares means for anyone rational is that you think they will either appreciate in value or give you dividends at a higher rate than other investments would. If I bought shares in GM or Ford, the company would get zero support; same here.
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