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How does it help a company if I buy their stock when the $ goes to the broker and whoever sold it?


As the company does not receive any portion of my investment, other than when it is initially offered how does it affect them when their stock is sold - or when people divest in their holdings?

You take on part of their debt and allow them to use the money for new equipment and products.When you sell the stock,the next person takes the risk that they will or won't pay dividends.The only return you get on your investment is the dividend or net profit.Therefore,if they don't make money you don't get paid.You take part of the risk that the business will fail.When Ford was incorporated he only had four investors,he bought them out as soon as he could,he didn't want people to earn with no effort.Imagine if they hadn't sold,it would be worth $$$$$$$.

It DOESN'T help the company! Only when they initially sell the shares does it help them. After that, it's like buying a used car. That sale doesn't help the car manufacturer either.

it doesn't help the company. a share is a part ownership of a business. so if the owner of the share sells it, the money goes to the owner.

it's like if you had a flat in a building. if you sold it, the building trust or whoever doesn't get the money. you do (after the friendly broker has taken her cut).

You don't buy stocks to help a company.
You buy stocks to make money.

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