Saving Government Rebate Checks

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16 years ago 03/31/2008 7:08am EDT

I am rather ignorant when it comes to financial matters but am curious and trying to learn more. So bear with me...

My question is: Why is investing in companies different from purchasing the goods they produce? (I am asking with the recent economic stimulus plan in mind.) Example: Why would it be better for the economy for me to run out and buy and iPOD rather than investing in Apple?

It seems to me that, in either scenario, I am providing the company with money with which to run their business as they see fit. Obviously, this must not be the case.

Thank you in advance to anyone who can explain this for me.

16 years ago 03/31/2008 7:38am EDT

re: financial moron

More people benefit, raw product supplier, manufacture, ad agency, shipper, wholesaler, retailer etc.

16 years ago 03/31/2008 7:39am EDT

re: financial moron

In the first case you are supplying them with profit. That's what it's all about.

16 years ago 03/31/2008 8:31am EDT

re: financial moron

When you invest in a company, besides purchasing the IPO, you aren't directly giving the company money. They received their money at the IPO. Instead, you are giving whoever owned the shares before you the selling price of the shares. They will then, in turn, spend it on a different good or service or invest it into another company/entity.

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