2007-06-11 02:37:09 · 7 answers · asked by sampoorna 1 in Business & Finance ➔ Investing
The free enterprise system as we know it would cease to exist. There would be no way to get new businesses started by IPOs, new product development would come to a halt.
The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks.
There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Without the stock exchange this could not be done.
///
2007-06-11 02:47:01 · answer #1 · answered by SWH 6 · 0⤊ 0⤋
It is impossible for there not to be one. You would have to eliminate all businesses to get rid of it, and even then it would still be around in some form.
For example, if a company pays out 5 percent of its total assets in a year to a flour company, it's just like the company owner saying "You give me free flour for a year and i'll give you 5% of my assets".
Over time the stock market would re-emerge. It is inherent in our economic system.
2007-06-11 18:09:51 · answer #2 · answered by Ninja grape juice 4 · 0⤊ 0⤋
no stock would be exchanged
2007-06-11 09:38:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Nothing, the world worked just fine before them.
2007-06-11 09:40:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
then shares would not be traded publicly, and shares would not be bought by the common man except the big guys who can afford a millioin of it.
2007-06-11 10:08:57 · answer #5 · answered by beauty 1 · 0⤊ 1⤋
There would be no publicly traded shares.
xxR
2007-06-11 09:38:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I wouldnt have a 401K
2007-06-11 09:44:16 · answer #7 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋