How does buying 100 shares of IBM on the stock exchange and holding it for a yea

  1. My Esoteric profile image92
    My Esotericposted 6 years ago

    How does buying 100 shares of IBM on the stock exchange and holding it for a year create jobs?

    When I but stock on the stock exchange, I am buying it from somebody else that owns it, not from IBM, so IBM does not see a dime of my money.  If I hold it for more than a year and then sell it for a profit, I only pay 15% on the capital gains.  How does my tax advantage for making ths type of investment help create jobs or growth for IBM itself as many on the Right claim it does?

  2. Doc Snow profile image92
    Doc Snowposted 6 years ago

    I'm not the best guy in the world to answer this question; I've never studied finance or business.

    But--if you, or somebody like you, wasn't available to buy that stock, presumably he would have had to sell to IBM, and the money that they would have paid him would have become unavailable for IBM to invest.  That's why stocks pay dividends, right?--it's compensation to the stockholder for the loss of the use of their money, paid by the company--which (one hopes) found a productive use for it.  Maybe they even hired somebody and created a job.

  3. Brupie profile image69
    Brupieposted 6 years ago

    Buying and selling stocks of the secondary markets, that is, existing stocks for companies doesn't help that company directly.  There is some advantage in keeping a demand for that capital though. 

    Most companies don't have all of the shares on the market.  The company-owned shares, known as treasury shares, are a sort of reserve capital.  Many of the decisions top management make are tied to the price of their shares.  If there is little demand for their shares, e.g. a low stock price, the company may choose to take existing funds and invest them in buying back more to assure existing shareholders that the company is worth owning.  If the stock price is high, however, the company may choose to release some treasury shares for things such as expansion, research or hiring. 

    I generally agree that holding shares isn't a big job creator, but it isn't cut and dried.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)