• SkunkWorkz@lemmy.world
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    24 days ago

    Buying stock is not funding the company though unless the company is issuing new stock. The company already took the cash during the IPO. The only thing buying shares does is affect the price. So it will make some evil shit stain who is the founder of the company wealthier.

    • Caveman@lemmy.world
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      24 days ago

      It’s a bit more nuanced. Buying the stock increases the stock price which makes issuing stock a better deal for the company in case they want to expand operations. It also makes stock buybacks less likely.

      So if they issue stock OP is indirectly funding the company. If OP prevented a buyback and the money went into investments such as a new prison OP has an different effect. Otherwise there’s no effect.