Mr. Prescott should not be writing about things he doesn’t understand (Fence Post, Nov. 17). People who invest in stocks or bonds do so for a reason — to make money. If he thinks that a company, be it Microsoft or AT&T, just takes the money and puts it a drawer where it lies until it collects dust, he has no knowledge of basic economics.
Much like a bank does when you create a savings account, the bank lends money for people to buy cars, homes, etc. Corporations use the money that people who purchase their stock provide to expand their products, hire people to create and sell the product, and acquire properties to build more and bigger facilities. To not understand these elementary economic facts I would suggest means not knowing about simple capitalism and what made this country great, even with all its flaws.
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