Why Should There Be A Stock Market?

[william the wie]

Good answers from Bern80, William the Wie and Toro.

The Stock Market is vital to the economy. Full disclosure: It's the industry I work in..

But I've always thought that.

If you're a hedge fund manager, you're probably a billionnaire.

Far from it.

I work in IT. Techs do okay..but I'm not rich..not by New York standards anyway.

If you want to get rich go to Moody's and S&P in NYC to find out the cheapest way to get copies of their studies on dividends, their reinvestment and the different asset allocation models and reallocation techniques to find a low risk, moderate return way to riches. Only an idiot goes into a casino for any reason other than to figure out what casino stock to buy. The folks at the ratings agencies can show you dozens of ways of how to become the house rather than the sucker and can clue you in on how to figure out what is the right way for you to do it.

 

[Valerie]

What used to be a market is now a casino.

Shoulda rolled the dice on Caterpillar at $30 like I told you!

Caterpillar, Inc. Common Stock
(NYSE: CAT )
Last Trade: 93.97

CAT: Summary for Caterpillar, Inc. Common Stock- Yahoo! Finance

That's what the croupier says to me all the time too.

See? I've never even heard of that word as I am not a gambler...

 

[Sallow]

If you're a hedge fund manager, you're probably a billionnaire.

Far from it.

I work in IT. Techs do okay..but I'm not rich..not by New York standards anyway.

If you want to get rich go to Moody's and S&P in NYC to find out the cheapest way to get copies of their studies on dividends, their reinvestment and the different asset allocation models and reallocation techniques to find a low risk, moderate return way to riches. Only an idiot goes into a casino for any reason other than to figure out what casino stock to buy. The folks at the ratings agencies can show you dozens of ways of how to become the house rather than the sucker and can clue you in on how to figure out what is the right way for you to do it.

That's one way. I played the Market it a little last year and did quite well. And did it just by paying close attention to the news and my surroundings.

 

[uscitizen]

Why should there be a stock market?

So that those who do not actually do not want to produce any products can still make money.
And who do you think they get that money from? The suckers who play the market.
Why do you think they want SS privatized?

 

[william the wie]

Why should there be a stock market?

So that those who do not actually do not want to produce any products can still make money.
And who do you think they get that money from? The suckers who play the market.
Why do you think they want SS privatized?

The suckers choose to become suckers.

 

[uscitizen]

Why should there be a stock market?

So that those who do not actually do not want to produce any products can still make money.
And who do you think they get that money from? The suckers who play the market.
Why do you think they want SS privatized?

The suckers choose to become suckers.

Yep by using 401K's and if SS becomes privatized....

But there are plenty of eager suckers as well out to make their fortunes the easy way

 

[uscitizen]

When a company actually sells stocks they benefit, otherwise the only benefit is their percieved stock price on the market to use as collateral and such for borrowing money.
Beyond that it is like trading baseball cards.

 

[william the wie]

When a company actually sells stocks they benefit, otherwise the only benefit is their percieved stock price on the market to use as collateral and such for borrowing money.
Beyond that it is like trading baseball cards.

That depends on dividend yield. If a stock does not have a dividend yield it should be presumed to be a POS until proven otherwise. Only suckers and private equity firms play with nonyielding stocks.

 

[Bern80]

Why should there be a stock market?

So that those who do not actually do not want to produce any products can still make money.
And who do you think they get that money from? The suckers who play the market.
Why do you think they want SS privatized?

The suckers choose to become suckers.

Yep by using 401K's and if SS becomes privatized....

But there are plenty of eager suckers as well out to make their fortunes the easy way

Well a sucker is born every minute. Case in point, YOU. There is nothing righteous about working for money. The purpose of life is to live it. It costs money. Working hard 40 hours a week or more for 40 years is one way to get money. But it's far from an efficient one. I don't know about anyone else but I kind of enjoy my free time, so I aim to get as much of it as I can. I really don't see the point in working for money with little time to actually use doing what I want. Do you? I guess you do. You're a sucker. You've been duped into how life is 'supposed' to go. Not only that you dub anyone else who finds a different way as evil.

 

[shintao]

Is there any part of the business cycle that requires a stock market?

I ask because it does nothing for workers, and as far as I can see it does nothing for the economy. And a corproation should be borrowing from banks, which show consumers their credit is good. It tends to take money out of circulation, and steals corporate profits that should be going to workers to stimulate the economy.

Does the stock market somehow benefit capitalism?

Not looking for an argument here, just some thoughtful responses.

A stock market is just that; A market. A centralized location for people to purchase various products. In this case shares of ownership in a company. That a centralized market place for doing that would eventually manifest is only logical. I guess I have to say the question doesn't make sense to me. Do you really mean to ask 'should businesses be allowed to sell partial ownership of their company as a means of raising capital?'

I don't care if they have buy-ins, I care that is not done through a bank where the health of the company canbe judged, and where the money can go into circulation for other borrowers.

Technically no, a business cycle doesn't require a stock market. Those of us interested in purchasing ownership in a company could do it the hard way. We could try to figure out somehow who owns how many shares of stocks, who's willing to sell them and for what and try and determine what the going rate for them ought to be.

It benefits capitalism in the sense that the market for stocks is more efficient when everyone can see in one location what shares are trading at. And yes the ability to raise capital by selling ownership of a company does do something for workers. It allows them to keep their jobs. Businesses need capital to operate and selling ownership in the company in exchange for dividends or the potential for those pieces of ownership to be worth more than what you paid for them, is one way of generating capital.

And that extra worth has to come from profits, so even if the workers have speeded up production through the influx of cash, it is an artifical increase of shorttime gain that eventually comes back to bite them.

I don't see how a stock market steals from workers. Okay let's pretend there is no stock market. You would now contend that businesses have extra money to pay employees? No they wouldn't. The fact that they pay dividends to non-workers means those none workers gave the business money in the first place. Now that money given to the business in exchange for ownership is gone. The business generates more income through the sale of stocks than it pays out in dividends for thos stocks. Otherwise businesses wouldn't do it. Which means if you take away the ability to sell ownership in a company that company has LESS money to pay its workers.

A solvent company need not sell stocks or make bank loans, but the difference is the stocks are not liquid like cash from a bank. Stock worth sits in deposit out of the economy, while a bank loan brings back cash that can be circulated. We are talking billions of dollars out of circulation that came from the profits made by workers. Selling stocks may or maynot affect workers, depending on why they were being sold. Would you buy stock in a dying company?

Anyway, I appreciate your insight.

 

[shintao]

Shoulda rolled the dice on Caterpillar at $30 like I told you!

That's what the croupier says to me all the time too.

See? I've never even heard of that word as I am not a gambler...

No, no, the word isn't groper. Croupier.

 

[Bern80]

A solvent company need not sell stocks or make bank loans, but the difference is the stocks are not liquid like cash from a bank. Stock worth sits in deposit out of the economy, while a bank loan brings back cash that can be circulated. We are talking billions of dollars out of circulation that came from the profits made by workers. Selling stocks may or maynot affect workers, depending on why they were being sold. Would you buy stock in a dying company?

Anyway, I appreciate your insight.

So I'm to understand then, it's not really a market for stocks that you are asking about. It's really the concept of stock itself?

 

[American I Am]

Is there any part of the business cycle that requires a stock market?

I ask because it does nothing for workers, and as far as I can see it does nothing for the economy. And a corproation should be borrowing from banks, which show consumers their credit is good. It tends to take money out of circulation, and steals corporate profits that should be going to workers to stimulate the economy.

Does the stock market somehow benefit capitalism?

Not looking for an argument here, just some thoughtful responses.

I lost thousands in the stock market right after 911, it took 7 years to get it back, and then right smack dab in the middle of GW and Obama, I took another MAJOR concession in my investments, I felt like the investors of ENRON. Since this time, I for one have found out that I am my own best investment, I no longer invest in the stock market, I take my hard earned money and invest in MYSELF!!!!

 

[dilloduck]

Is there any part of the business cycle that requires a stock market?

I ask because it does nothing for workers, and as far as I can see it does nothing for the economy. And a corproation should be borrowing from banks, which show consumers their credit is good. It tends to take money out of circulation, and steals corporate profits that should be going to workers to stimulate the economy.

Does the stock market somehow benefit capitalism?

Not looking for an argument here, just some thoughtful responses.

I lost thousands in the stock market right after 911, it took 7 years to get it back, and then right smack dab in the middle of GW and Obama, I took another MAJOR concession in my investments, I felt like the investors of ENRON. Since this time, I for one have found out that I am my own best investment, I no longer invest in the stock market, I take my hard earned money and invest in MYSELF!!!!

Where's the thrill in that ? You don't get to be part of the crowd that helps set prices for the rest of the people who work instead of manipulate money for a living.

 

[Toro]

Kudos to the mod who banned the spammer.

 

[editec]

Is there any part of the business cycle that requires a stock market?

I ask because it does nothing for workers, and as far as I can see it does nothing for the economy. And a corproation should be borrowing from banks, which show consumers their credit is good. It tends to take money out of circulation, and steals corporate profits that should be going to workers to stimulate the economy.

Does the stock market somehow benefit capitalism?

Not looking for an argument here, just some thoughtful responses.

Stock markets work to bring the money to the folks who might be able to do something productive with it.

Admittedly there are serious problems with the administration of it, the insider trading, the arrogance and so forth, but the stock market is necessary if we are going to allow corporations to raise capital.

 

[dilloduck]

Is there any part of the business cycle that requires a stock market?

I ask because it does nothing for workers, and as far as I can see it does nothing for the economy. And a corproation should be borrowing from banks, which show consumers their credit is good. It tends to take money out of circulation, and steals corporate profits that should be going to workers to stimulate the economy.

Does the stock market somehow benefit capitalism?

Not looking for an argument here, just some thoughtful responses.

Stock markets work to bring the money to the folks who might be able to do something productive with it.

Admittedly there are serious problems with the administration of it, the insider trading, the arrogance and so forth, but the stock market is necessary if we are going to allow corporations to raise capital.

Imagine how many people would be needing a job if they couldn't gamble on the market.

 

[Bern80]

Is there any part of the business cycle that requires a stock market?

I ask because it does nothing for workers, and as far as I can see it does nothing for the economy. And a corproation should be borrowing from banks, which show consumers their credit is good. It tends to take money out of circulation, and steals corporate profits that should be going to workers to stimulate the economy.

Does the stock market somehow benefit capitalism?

Not looking for an argument here, just some thoughtful responses.

Stock markets work to bring the money to the folks who might be able to do something productive with it.

Admittedly there are serious problems with the administration of it, the insider trading, the arrogance and so forth, but the stock market is necessary if we are going to allow corporations to raise capital.

Imagine how many people would be needing a job if they couldn't gamble on the market.

You make it sound as if there is something inherently altruistic about generating wealth through a job as opposed to some other means. If that's the case, it's you who has been duped.

 

[whitehall]

Is there any part of the business cycle that requires a stock market?

I ask because it does nothing for workers, and as far as I can see it does nothing for the economy. And a corproation should be borrowing from banks, which show consumers their credit is good. It tends to take money out of circulation, and steals corporate profits that should be going to workers to stimulate the economy.

Does the stock market somehow benefit capitalism?

Not looking for an argument here, just some thoughtful responses.

You must live in a hole in the ground with those Geico characters shinto. Retirees would be eating dog food if they depended on scams like the "new deal" and "the great society" to fund their retirement. There isn't a dime in the so-called social security fund. Politicians have been stealing from it since it was established and LBJ made it official that FICA taxes would go into the government slush fund. Every pension plan is heavily invested in the stock market and they remain solvent even through fluctuations in the economy. Would you put your future in the hands of politicians who allowed Frank Raines to cook the books in Fannie Mae and walk away with 90 Million dollars for three years work? Would you trust a pervert congressman who didn't know his boyfriend was running a male prostitution ring out of his apartment. Reagan was right, government isn't the solution, it's the problem.