Do we really need the Stock Market Exchange or can our economy fare well without it?

Answer 1

Well, you are right that an economy can function without a stock market, but the basic function of the stock market is to transfer money from people who have it to others who want to use it.

This is a useful function, because money has to transfer between people for the economy to grow.

Answer 2

Yes we need it. The stock exchange is how companies access capital that they would not otherwise get from banks. It is the source of venture capital to create new business. For the consumer, it is an alternative to the tiny amount of interest that banks give. Dividends from stocks and interest from bonds form the living for many people while banks give only pennies per dollar in interest. The stock exchanges are a necessary and vital part of the U.S. economy.

Answer 3

Companies need capital to invest in new equipment, new technologies. Without the securites market - companies would have to rely on banks I guess for borrowing. Or issue bonds available to the public. Might have the benefit of companies not have to look to just the next quarter and have them planning longer term.

Answer 4

It's very helpful for an economy, and any well-developed economy will have something similar.

It isn't necessary to be organized exactly like the ones today, but there must be a way to buy and sell ownership shares in businesses, and this seems to be the most reasonable way to do it.

Answer 5

Partof the whole reason this ecomony survives is because of regulating funds through the Open Market.

Answer 6

Do you have another idea of raising corporate money for reasearch and development or start up money for a new venture or to re-tool or update equipment. Even cities and state and the federal government obtain money buy selling bonds.

Answer 7

we need it, it funds all the major businesses