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REDDIT

¿Why exists the secondary stock market?

U
Feb 25, 2025 · 21:37

Last year, I started investing, with not very awesome results after this week's downturn.

During this time, the following question has been tormenting me: What is the value of investing in a company by purchasing shares in the secondary market?

I search for answers to this question, but the ones I find don’t fully convince me. It helps measure the value of companies, you receive dividends so that in 100 years you recover the initial investment...

The only logical answer I found was from a Spanish entrepreneur who said he used his company's shares as collateral for debt.

But the question remains: What is the ultimate goal of buying shares in the stock market? What differentiates a digital asset with no backing from a minority share in a company?