So banks create money through loan creation, that is now commonly agreed upon by at least most people on this list.  My question is this; does the stock market create money through IPO's?  So for example I am a company looking to make heavy investments in plant and equipment, and I fund that through an IPO, is the process of money creation the same as the process of loan money creation done in a bank system?

I understand the premise that anything can be money based upon how acceptable it is in exchange, but is there a fundamental difference between and IPO and bank created loans?

Also are there papers on this out there?

Thanks in advance to all who will pipe in.

Timothy A Wunder PhD
Clinical Associate Professor
Graduate Student Advisor
Department of Economics University of Texas at Arlington
817.272.3257