Hacker News new | past | comments | ask | show | jobs | submit login

A small percentage of stock market transactions are Company to Investor. Most transactions are Investor A to Investor B which only indirectly impacts a company’s value. Clearly they are related, but it's generally much better for investors in healthy companies for that company to get money from the bond market than the stock market.

PS: Consider a company with consistent revenue/dividends but zero transitions on the stock market. Its value is going to be heavily influenced by stock market conditions, but it's ability to raise money is going to be dominated by the state of the bond market.

Edit: My point is what it means when a transaction between Invester A and Invester B happens on the stock market at a given price.




It is often better for a company to raise money from the bond market, but only up to a point and only because of the tax implications.

http://en.wikipedia.org/wiki/Trade-off_theory_of_capital_str...




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: