Anonymous
Anonymous asked in Business & FinanceInvesting · 4 months ago

what is the stock market even for anymore? it doesnt have any practical value, it is just a casino?

why the Federal Reserve Bank is putting Trillions of dollars into it at taxpayers expense? is it true? why there is not uproar over this?

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  • 4 months ago

    The stock market is a mechanism that allows anyone regardless of race, gender or creed to buy and sell part ownership (shares) in publicly listed companies. 

    This allows anyone the right to become a business owner (or part owner) and receive a part of the profit through growth or dividends. 

    This is its function. To literally create a safe and reliable marketplace for people and companies to buy, sell or swap their shares.

    It's not evil, it's not a casino and it's not responsible for improving anything else in society other than the facilitation of its services (see above). 

    Expecting anymore from the stock market would be like expecting yahoo answers to pay for your health insurance. 

    While I'm not American I imagine if the Fed is pumping trillions into large companies it's to prevent widespread layoffs, tightening of credit and inability to repay business loans leading to a great depression like situation (think 1920s).

    While large companies leave much to be desired, the stock market itself remains the purest form of democracy and the greatest way to generate long-term wealth through consistent and measured investment. 

    If you are interested in stocks but want to avoid having to pick a single company (this is where people mistake for gambling) you can invest in diversified index funds to minimise risk and benefit from the entire American economy. 

    How cool is that! 

  • Anonymous
    4 months ago

    The ability to trade ownership shares in limited-liability corporations is the basis of essentially all wealth in our civilization.  Your assertion that there is no practical benefit is utterly ridiculous.  It is a casino only for those with a bad mental model of our economy.

    It is true that, at the present time, the market is being distorted by government intervention --- trillions of dollars are being created, and much of that is finding its way into the stock market, because basically "there is no alternative".  If you understand that dynamic, you can make money from it.  If you are a right-wing nutjob who believes that the Fed is at the center of some giant conspiracy, you have a badly propaganda-distorted and excessively simplified economic model of our economy, and that's why you are thinking this way.

    There is no "uproar", because it's probably about the best thing that can be done under the current circumstances.

  • Judy
    Lv 7
    4 months ago

    no uproar because it's not true

  • kswck2
    Lv 7
    4 months ago

    What the stock market is, is Way too complicated to be answered here. 

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  • Anonymous
    4 months ago

    You're an immature moron with a zero net worth.

  • Anonymous
    4 months ago

    Right you are!

  • Anonymous
    4 months ago

    Don't say that too loud someone will break in to a store and steel a TV .

  • Anonymous
    4 months ago

    People are taught that the stock market is all American and necessary for prosperity that never really exists. People find it uncomfortable to question things that they have been brought up to respect. But yes, it's basically a gamble.

  • 4 months ago

    It has been a casino for years.  It is past time to reward truly long term investing with tax code changes...

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