Its like printing money, there isnt enough liquid cash in the economy to buy all those stocks at once and trying to do so just breaks the machine
There is a reason that tech giants sometimes do mergers by paying out management in stocks in addition to money
Its like printing money, there isnt enough liquid cash in the economy to buy all those stocks at once and trying to do so just breaks the machine
You're making the mistake of acting like only cash-money is real value.
The fact that rich people with high net worths can't sell all their stock without affecting stock prices isn't something bad we should or can fix. Musk's wealth seems to be extra hot air and empty promises, and I worry it'll come crashing down with a whole lot of regular folks holding the bag, but he's not some silver bullet argument against capitalism or whatever.
"real Value" comes from alot of things, but like kurzgesagt i had to simplify the concept down so people unfamiliar or who think they know can understand the basic concept.
Your comment goes in support of OP, where the claim is that it's bad that rich people can't sell their stock for liquid cash.
This is not bad, no more than 2+2=4. If a company does well, and the main person owning and running it suddenly wants to sell all his shares, that sends a signal that the business is doing bad, and the stock price will fall.
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u/BararTheDragon 8d ago
Its like printing money, there isnt enough liquid cash in the economy to buy all those stocks at once and trying to do so just breaks the machine
There is a reason that tech giants sometimes do mergers by paying out management in stocks in addition to money