THREE reasons why Apple will be the No. 1 AI stock in 2025 — LIVE with Graham at 2 p.m. ET today!
I wanted to continue on a thread that I’ve been discussing for the past few days about where your money really goes when you buy stocks.
There are a lot of misconceptions out there, and many investors want their portfolios to align with their personal values.
Whether it’s avoiding “sin” stocks like alcohol, tobacco and firearms like I had to do when managing money for the Mormon church…
Or focusing on companies with green initiatives or Diversity, Equity and Inclusion (DEI) programs, these preferences often stem from a belief that buying shares is a direct way to support — or reject — certain corporate behaviors.
But as we discussed last week, when you buy shares of a company like Microsoft (MSFT), Tesla (TSLA) or Apple (AAPL), your money doesn’t go to the company itself.
Instead, you’re buying those shares from another investor in the secondary market. Your money changes hands with that seller — not the company behind the stock.
This is a crucial distinction. The only time a company directly receives money from stock sales is in the primary market, such as during an initial public offering (IPO) or a secondary issuance of new shares.
These events are rare for retail investors to participate in because they are typically dominated by large institutions.
In the secondary market, where almost all of us trade, companies aren’t directly affected by the buying and selling of their shares. For example, if you like CEO Elon Musk so you buy shares of Tesla tomorrow, the money from that transaction will not go to Musk or Tesla’s balance sheet.
The same concept applies to options trading.
When you trade options, your money goes to a market maker who facilitates the transaction, not the company associated with the stock. So, whether you’re trading shares or options, your investment isn’t financially benefiting or harming the company in a direct sense.
This means that if you’re avoiding investing in a company because you don’t want to support its practices, your decision won’t impact the company financially.
Similarly, if you’re buying shares to “help” a company grow, that’s not how it works, either.
So why do ethical investing strategies still matter? While individual transactions in the secondary market don’t directly affect a company’s finances, stock prices influence public perception, executive compensation, and even the ability to raise capital in the future.
A company’s valuation can attract or deter investors, which has a cascading effect on its reputation and strategic options.
For investors focused on aligning their portfolios with their values, this means looking beyond secondary market transactions. Consider broader trends and the impact your choices can have on corporate behavior over time.
If enough investors collectively prioritize socially responsible companies — such as those in the Energy sector leading the way in renewable energy — it can shift market sentiment and reward those companies with higher valuations, better access to capital, and stronger influence.
The bottom line?
Your money doesn’t directly support or harm companies in the secondary market, but your investment decisions can still shape broader market trends and corporate priorities.
By understanding how the market really works, you can align your portfolio with your values while staying focused on your financial goals.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. LIVE AT 2 PM ET: MY NEW PRICE TARGET FOR APPLE!
Today is the day!
Graham is going live today at 2 p.m. ET today, Jan. 13…
To reveal his THREE reasons why Apple will become the No. 1 AI stock of 2025.
PLUS, he’s targeting a brand-new trade opportunity today…
Naturally, we cannot promise future returns or against losses, but….
It’s an event you don’t want to miss…
