alt Hacker NewsOwning stock is the polar opposite of having money in a vault - it is giving money to the economy. Specifically to a part of the economy that is a money-generating machine: a company. Put in circulation precisely to be invested on the economy.
Owning stock is the polar opposite of having money in a vault - it is giving money to the economy. Specifically to a part of the economy that is a money-generating machine: a company. Put in circulation precisely to be invested on the economy.
When you buy a stock, "the economy" is not getting the money. Some other investor is getting it, who may or may not be putting that money to use. They may just turn around and buy another stock, giving that money to another investor, who buys a different stock, and on and on and on, with no other actual economic activity happening.