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People have no clue how the stock market works. When you buy stock in GE, that money does not fund or go to GE, you are buying it from a third party broker. The stock market is a clearing house for company stock that is already in the market, investors don’t buy stock from companies.
The only time investors finance company activity is when the Initial Public Offering (IPO) happens, or on the very rare case that a company makes a second offering of stock to raise capital. Most IPOs are reserved for “institutional investors” such as large banks and hedge funds.
Buying stock doesn’t add anything to a companies value. Investors, for the most part, do nothing expect leach value from the companies. They very seldomly add anything of value and all too often reap the majority of the profits.
Read the full story: http://nbcnews.to/2oqEV64