Stock Markets Exposed

What is the ultimate goal of the stock market?

I Is it helps and supports for the developments of future generations?Are there any charity funds to help those people who are in real difficulties?I think by these methods of stock market, idleness grows up and up, but idealism is compressed to some extent. Is it true or not?

Public Comments

1. The stock market has no goal...it is just a market...a place for people to come together and buy & sell goods for a profit. No more. No less.
2. The stock market is a vehicle for the exchange of equities. Are you trying to state it should be for altruistic means? I see that you are misinformed.
3. Its a place to raise capital. And a place for buyers and sellers to come together, like any market. Banks are a source of capital, but I dont think anyone expects them to be charitable organizations.
4. The ipo raises money for a growing company. Trading allows us to limit risks or to transfer risk. Risk holding is rewarded in a diversified portfolio. A growing company does something of value and earns money which it reinvests in itself. The market values the company based on retained earnings and how the company spends this money.
5. ok dude... Imagine this: In the year 1995 you start a firm called walalala-I-dunno-who-in-hell-cares Corporation. You start this off with just 3 employees + yourself, 4 computers and an office with a total investment from your own savings generated from your whatever-the-hell-you're-doing-now. Consider that you've invested about INR 200,000 for this. You were growing at a gradual pace of 15-18% (a good figure) for 5 years and now in 2000 you have about 14 employees compounded (all your savings are now Working Capial, at this time you have converted the firm to a company Pvt Ltd). By 2008, you've grown at a much higher pace and you now have more than 120 employees with offices in foreign countries, but you are not able to grow as fast as your competitors considering the fact that you can't earn as much as your hungry company's working capital requirements. Suddenly the industry boomed, you now need more funds as you are now in a position to manage and generate bigger clients, let us consider the way you can raise this money... 1. Bank Loans: Now a days, banks can provide a loan of even 10-10000 million INR if your project is viable. On both terms: on a regular interest or against a stake. Usually, after this larger banks try to talk you into going for a public issue so that the banks may earn unimaginable rates on their returns, and then crap all over you as they sell the stake and your prices fall. 2. Venture Capital: Take all the money you want (if you have a great balance sheet) and lose most of the control over your company. Plus, 'your' company is no longer 'yours'. If you have a long term plan and are establishing a business for you son, etc. then forget it. But of course you'll retire very rich. 3. Stock Markets: Without the stock markets you will never be able to find more than 5,000,000,000 dumbarses who are dumb enough to spend their life savings on a company and a person they've never even heard of and don't know crap about. Such as the most recent Satyam event, where I lost such a huge amount that it will take me more than 3 years to save that kind of money again through my business. Now a days it has become very easy to generate money for legitimate or illegitimate companies hrough stock markets considering the interest of people in investing anywhere the TV tells them to invest. Therefore, you may launch a public issue to fulfil your demands for funds and distribute the ownership of your company amongst millions so that no single entity can interfere with your 'business decisions' to make a prime villa or a castle on a prime residential location 'for business and commercial purposes'. So there. Basically, just a way to raise some money that you really need and some you might need for 'further business / risk bearing' purposes.
6. The stock market has absolutely nothing to do with social goals, the development of future generations, idleness or idealism. It is simply a centralized location where companies who need investment capital can be put in contact with people who have it and are looking for a way to make money on it. If the goals are any loftier than that, you are looking in the wrong place.
7. The goal of the stock market is to cheat you out of your money so ceo's and rich bigwigs can get even richer. It does that by brainwashing you into believing it is the best place to put your money. The scheme works great.
8. Supply and demand and for suckers and dumb money to lose everything and start over
9. To bring together people who have capital with people who can put it to profitable use.