Hacker News new | ask | show | jobs
by umanwizard 3223 days ago
How? Buying stock doesn't transfer any money to the company (unless it's newly issued stock)
1 comments

The act of buying stock signals demand and reduces supply, which will effectively cause the price to rise. Indirectly, rising stock prices are a positive indicator for the health of the company. Directly, if the company chooses to sell stock, it will be able to sell it at the higher price.