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The only person who invests is the first person to buy stock in a company. The second-hand market is purely speculative, and its only productive value is in providing an out to the original investor…
No.
starfish&coffee-
The primary and secondary markets do fundamentally different things though. The secondary market is more akin to just redistribution, given that the buyers aren’t actually paying the company to create some stuff, provide a service and so on.
I’m not going to pretend that everyone’s using the word ‘investment’ wrong, but I would personally prefer for those two processes to have well known and distinct words.
It might change how we engage with fraudsters hyping intangible snake oil for the sake of a purely financial return and open up different models of investment, maybe like mutuals, to direct a bit of that capital on more tangible goods in more local areas.
slippers
There’s a peculiar idea that buying stocks and shares is ‘investing’ though.
The only person who invests is the first person to buy stock in a company. The second-hand market is purely speculative, and its only productive value is in providing an out to the original investor…