With lower interest rates businesses and consumers borrow more. Generally this would mean increased economic activity and perhaps a rise in stock price levels.

Interest payments go to banks who offer the credit.

I am trying to analyze the difference in stock market compared to a bond market and am currently stuck on the difference between the Supply of Stock and interest rates dropping. In the bond market, I understand that a lower interest means less Bond Demand, however, will their be a shift in the overall supply of stock? As in, people invest in stocks more during lower interest rates, but who receives these interest payments?

Thanks!