Capital is only provided to the company upon the initial sale of the stock. Beyond that, it is investors siphoning off the profits of a company that could be reinvested into it.
Equity isn't everything, companies often sell debt to finance business expansion. Don't forget secondary equity offerings when they do happen. Stock price is important to a publicly traded company. Perhaps you are discussing dividends with your siphoning claim?
reply to Skippy25
You know, Its the Ceo's and the few others at the top that suck these
company's dry for everything there worth, then cry crocodile tears about
having to raise prices, so they can repeat the raiding of cash for them self's
over and over again.
You hear about 100 million CEO salerys, like its no big deal, were do you think
the money comes from? foolish Investor's and inflated consumer prices
remember for every cent you personally make off a stock a ceo makes
around a hundred dollars. not to mention when you add all CEO salerys
up and the inflated prices of everything that causes, throughout a avg workers
life the stock market as it is now is destroying any decent quality of life for the
Think this is BS
Look at your Portfolio, check out what YOU made from owning a particular
company's stock then compare that to what a CEO and a few other top exc
got paid during that time period and you will see, its nothing but a ponzi
scheme, thats kept alive only by increasing consumer prices.
Someone once told me, wall street was nothing more then one giant booky
I said please don't give bookys a bad name, gambling doesn't effect food,
gas or housing prices for millions of workers on a national scale. causing
starvation and wars over oil, so a few could live like kings