this post was submitted on 26 Jul 2024
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Asklemmy

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[โ€“] [email protected] 12 points 3 months ago (2 children)

Stock trading.

I am fine with companies issuing stock and with people selling that stock back to the company. Everything else should be illegal.

[โ€“] [email protected] 7 points 3 months ago (1 children)

Why wouldn't companies just set themselves up as the exchanges in that scenario?

I don't think it would functionally change anything

[โ€“] [email protected] 2 points 3 months ago (1 children)

I'm envisioning stock as a sort of non-transferable contract between you and a company. There would be no way to pass the stock to a third party.

[โ€“] [email protected] 3 points 3 months ago (1 children)

Then how would the stock have any value?

[โ€“] [email protected] 2 points 3 months ago

The way it originally had value. You are loaning the company money and betting they are successful enough to pay you back with dividends.

[โ€“] [email protected] 1 points 3 months ago (1 children)

What is the point if you cannot trade it to other people? How are you supposed to make money by trading then?

[โ€“] [email protected] 1 points 3 months ago

The company pays dividends. You make money if the company succeeds, which is why stock was created in the first place.