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As the market turns down, will it take the successful stocks with it?


Companies invest in other companies, but if the companies that invest in other companies falter, won't they have to pull their investments in other companies and won't the domino effect take place that will cripple the economy unless the government steps in and invests in the corporate sector?

Your question is too much for me to sort out but I have a book from college that I think you will enjoy reading given your question:

No, buying and selling a company's stock has little appreciable effect on the company.

No companys wont just pull there money out when they have a large investment in another company..

yes it one of the subsidery company's do bad it will bring down the balance sheet of the parent company which will lower projected cash flows so the company will have a lower valuation and decrease the share price

No the fed does not invest directly in the corporate sector they have other mechanisms to do control the economy like the discount rate or reserve requirement or money supply

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