Matt Levine’s Money Stuff: The Stock Market Will Get More Stock

AI stock

You could tell a story like this:

1. Companies raise money from investors. They use the money to do business things. The business things generate money. If the company is successful, its business will generate enough money to (1) pay for future business things without asking investors for more money and (2) pay back the investors’ initial money with a nice return.
2. There are, at any given time, different companies in different stages of their life cycle. Some companies are raising money from investors to build their business. Other companies are successful, doing their business, and returning money to investors.
3. The ...