Quote:
Originally Posted by qed  I am sure you are aware of this (doesn't sound like it though), but just to be clear, the money is made when the shares are first offered to public. Any further trading between individuals have no value to the company. |
Further trading has
immense value to a company! Imagine for a second, that further trading was not possible. That when an individual bought a stock, he could never liquidate his asset. That he would have to continue receiving dividends.
Would individuals be likely to buy stock? Maybe--but they would be much
less likely. So the possibility of further trading of a stock provides an immense value to a company, because they wouldn't be able to sell shares without it.