All I see the market go up everday and down for a small percent, they buy the sell. What is the benifit for the company?
2006-08-11 21:28:59 · 4 answers · asked by kuw mama 59 1 in Business & Finance ➔ Investing
The company initially issued stock to raise capital. The benefit to them was the capital that they received to expand the business. If there were no seconary market for those shares that the company sold, it would be much more difficult for the company to sell the shares intially. People would not wish to buy something that they could not in turn sell. That is the purpose of the stock market--to provide a means for people to buy and sell stock that had been previously issued by a company.
Stock prices however do not alway go up. They sometime drop dramatically and sometimes for extended periods.
Look at the chart for INTC for example.
2006-08-12 02:59:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Have you never heard of Long term investing???
My Lowes Stock just split, I went from 10 shares to 20 and Best Buy just split about 6 months ago.
2006-08-12 04:31:20 · answer #2 · answered by sansjazz 3 · 0⤊ 0⤋
Not all the time Bull get benefited
2006-08-12 04:35:48 · answer #3 · answered by king 4 · 0⤊ 0⤋
its pay the bull when its work.
2006-08-12 04:33:14 · answer #4 · answered by nick 1 · 0⤊ 0⤋