If I buy a stock for $100 but the valuation of the company increases to $200, did the fed create that money?
Yep. The fed prints. Loans to the state as bonds which then buys stock which creates demand driving up prices.
Usa government is basivallyniwnationalizibg industries through the stock market.
Worse all this capital is destroying the economy because capital isn't going to where consumers demand it to go. Rather its going to defunct companies for political reasons
you only get the $200 when you sell so it comes from the buyer it doesn’t create more money
Thats a differenr process. A stock does increase by magic. The orice reflect the amiunt of the last buy order. The more owiple buy, the higher the peice goes
That's not how most money is created
If I buy a stock for $100 but the valuation of the company increases to $200, did the fed create that money?
The Fed injects trillions into the stock market by buying up corporate stocks. So that rise from $100 to $200 was probably heavily influenced by Fed purchases (using printed money).
Maybe. If the fed printed a bunch of stimulus money and gave it to people who didn't actually need it. Then those people buy shares of Gamestop and other companies you might agrue the Fed helped to inflate the stock price.
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