No. of Recommendations: 2
but let's not lose sight that investing in company shares does not add to their coffers.

Not directly, but if their shares continue to be in high demand, then the company's cost of equity capital stays low, i.e. they can expect good prices for newly issued shares. This is a trivial effect when one individual investor buys a few hundred or thousand shares, but an important one when that is multiplied by many thousands of investors. And with micro caps, the effect may not even be that trivial. The impact of buying existing shares on lowering a company's WACC can probably be quantified by someone with better math than me, and probably has been done. It would be interesting to see how that looks vs. buying the same number of newly issued shares at the current market price.

-Mike
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