Miguel: Help me with my economics please!?
Theodore Roosevelt once said ” there is no mole difference between gambling at cards or in lotteries or on the race track & gambling in the stock market”. In what Social purpose do you think is served by the existence of the stock market? Please use examples
Answers and Views:
Answer by SDD
The stock market allows companies to raise capital more efficiently and provides liquidity to investors.
It is still true today. The difference is only we use all technology to gambling in the stock market. And if the inside information leak out without getting caught,we will use it. If we cannot do it by ourselves, we can use a service of the fund manager. They are a well-trained gamblers with high technology.The stock market and capitalization is serving economic purposes. The companies in the list have to be more transparent, and provide public information correctly. They can get cheap funds than bank loans.And it is an indicator for politicians. But it can also be used as a money laundry.
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