In any given society, there are going to be members of that society that have extra money, that is to say, money that they don’t need to pay immediate expenses with and therefore they have a desire to do something with that money, beyond just saving it, which in many a case, means that they have a distinct desire to invest that money for profit. Nowadays, one of those things that people can invest in, is publicly traded corporations in which the investor, whether at the Initial Public Offering (IPO) or later when the stock is publicly traded on a national stock exchange, the person so investing can buy into the desired corporation, for the expressed purpose of receiving a benefit from that corporation, which would include stock appreciation and/or dividends.
The reason why investing in publicly traded corporations is so brilliant is that a significant portion of the money raised to invest in a specific publicly traded corporation comes forth from people who are passive investors. That is to say, these investors pretty much have no say in how the business will or will not be conducted, but have full faith and confidence in the business enterprise that it will be successful or will continue to be successful and therefore the monies invested, by these passive investors, will work out well for them. So too, the reason why there are publicly funded corporations in the first place has everything to do with the fact that for corporations to exist, to grow, and to maintain or augment their position, they need capital, and companies that do not have enough capital are typically restricted in what they can or cannot accomplish, which is why finding passive investors is ideal for many a corporation, for in exchange for receiving this necessary capital, they sacrifice little in return, for the reins of the business enterprise remains in the hands of the Board of Directors, who have little or no interest in being supervised or controlled by those that put up the money for their business, which means that for both parties the stage is duly set for each to benefit from the other.
Indeed, money makes money, and those who have fair access to capital have the very thing that will enable them to stay not only current but to excel over all other companies that lack the same access to capital, or are, as a company, too slow to avail themselves of that option. For a certainty, there are plenty of corporations that have great ideas, but a great idea, that lacks capital isn’t going to have the same success rate, as a great idea that is backed by a substantial amount of capital, because those that are capital poor, not only have fewer options, but they aren’t able to handle as well the vicissitudes of everyday business that a well-capitalized company can.
All of the above signifies that passive investors who invest in well-managed publicly traded corporations that have a need for a lot of capital to best achieve their goals, has a strong chance to result thereby in that desirable win-win outcome, which is not only good for those that participate in such, but also good for America, as well.