Saturday, August 10, 2013

A nice read on secondary market/stock price inrelation to a company

To summarize: the price that a stock trades at is very important to a corporation, even if it is not receiving any money directly as a result.  In general, the higher the stock price in the secondary markets, the greater the number of financial options that management has, and vice-versa.

http://alephblog.com/2013/07/26/the-stock-price-matters-regardless/
http://www.frbsf.org/education/publications/doctor-econ/2005/october/debt-equity-market

How Big Finance Crushes Innovation and Holds Back Our Economy


There’s a motto on Wall Street: “I.B.G.-Y.B.G.” or “I’ll Be Gone, You’ll Be Gone.” As long as you’re making money right now, what happens tomorrow is not your problem.

Financiers may appear to be simply “making money out of money,” but if you look closely, you can see that they are really getting rich on the backs of people producing useful things, like consumer electronics, and capital goods like factories and equipment. Good jobs, the health of the overall economy and society, growing incomes for the poor and middle class—all of these things have been put aside in the quest for more financial profits. The game is unsustainable. And it’s turning out badly.

http://ineteconomics.org/blog/institute/how-big-finance-crushes-innovation-and-holds-back-our-economy

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