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That's maybe not "the" reasoning, but that was the reason tele gave. In one sense, there is a certain logic to what you are saying. Investment is good, so we want to encourage investment, right? But as others have pointed out, unless you are buying stock at the IPO or secondary offering you aren't actually investing capital in the company. Strictly speaking, you are saving, not investing.

As others have pointed out, without buyers after the IPO trading the stock that provides liquidity to those IPO buyers there would be far fewer IPOs. No?

The idea that someone else suggested that people only want a stock to do well and not the business. Yeah, some people have that short-term trader mentality. But, anyone who has read or listened to TMF founders just a little bit know that finding good companies and investing for the long term is different than day trading and short term thinking. Stocks don't rise over many years (and/or pay good dividends) without being successful good businesses providing produces/services that people want to pay for -- think of a few of the long term TMF stocks, such as Amazon, Netflix, Starbucks, Apple.

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