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To: 1Old Pro
Did the index funds buy the underlying securities? If so, you helped finance business growth

Except for the initial IPO, the money paid for stock goes to the current stockholder, not to the original company. If I sell my 3M shares and buy GE stock, that's all on the savings side. I sell to one investor and buy from a different one. It generates no demand for product, it does nothing for the economy.

77 posted on 06/10/2015 10:01:11 AM PDT by ConstantSkeptic (Be careful about preconceptions)
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To: ConstantSkeptic
Except for the initial IPO

A stock index fund, or mutual fund, is a continuous offering

81 posted on 06/10/2015 11:15:32 AM PDT by 1Old Pro
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