Do we really need a stocke market? The world economy didn't have any stock market 150 years ago, why would we need one now? Who invented the stock anyways?
2007-03-25 17:27:11 · 5 answers · asked by domino38 1 in Business & Finance ➔ Investing
Stocks exist:
1) As a way for companies to raise money. They sell off ownership stakes in the company and use the cash to expand.
2) It allows the owners of businesses to raise money, and allows them to easily sell part of their business without selling the whole thing.
The capacity to do both of these things is actually quite beneficial to businesses--the world economy is a lot larger than it was 150 years ago (and for the record I'm pretty sure the US stock market is older than that anyway.)
I think stocks were invented either by the Dutch or the British in the 16th-18th centuries.
2007-03-25 17:50:00 · answer #1 · answered by Adam J 6 · 0⤊ 0⤋
The stock market is a way for average investors to profit with the larger companies like Microsoft. You as a stock holder become a partial owner of the company so to speak. So with stocks you can invest anywhere in the world on any number of products, so if you know of a new trend in shoes that will be all the rage, you can benefit from that by purchasing the stock with out starting your own shoe company. That is the easiest way to explain the process. It can get complicated when you start making the investments. But yes we do need the stock market, many companies depend on the investors to stay in business especially if there business is seasonal like department stores, and in turn the country needs the stock market to help it's economy continue to grow. The stock market began with a group of 5 guys in New York.
2007-03-26 00:42:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
1) Because we need to go to Mars, Build a 100 MPG Car and Find a Cure for Cancer.
2) Yes.
3) Actually the Stock Market was invented over four hundred years ago.
4) Vereenigde Oostindische Compagnie.
2007-03-26 01:08:01 · answer #3 · answered by Anonymous · 0⤊ 1⤋
So businesses can get extra money to grow faster than they could just with profits, and for people who have money to invest, to be able to participate in companies other people run.
2007-03-26 00:35:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋
psst ha ha ha
2007-03-26 00:30:54 · answer #5 · answered by RiverGirl 7 · 0⤊ 1⤋