The USA stock market trading halted due to coronavirus. Why cant the lawmakers just abolish the stock market? Nothing will change if it's abolished. Stores, and all business are heavily regulated in the USA, and the stock market has nothing to do with the functioning or profits of all businesses. All the stock market does is lets people buy and sell these things called shares.
Anonymous
Go back to Cuba or Venezuela.
tiescore
So you want to lock me out of adding shares or disposing of shares if I need cash to purchase something? You'd keep business out of being able to sell shares to raise capital.
The Oracle of Omigod
Capitalism runs on the funding from selling portions of companies to purchase assets. These partial ownerships of companies are called stocks. The only time the company benefits is during the IPO, the Initial Public Offering of stock. After that the shares of the company can be bought or sold to the public in the stock market. Abolishing the means to generate capital for business would mean the end of our economy. We would become Venezuela.
Casey Y
Correct...its just an easier way for people to invest in businesses and diversify their assets. Rather than having all of their assets in just the one company they own.
It also allows some of the profitability of a company to be split up...
So, without a stock market, you'd have a much harder time to buy or sell your business...easy to not care if you have no assets...
Amy
Wow, you're clueless.
"These things called shares" are shared ownership of the businesses.
They determine who receives the profits and who makes decisions about what the company will do.
Most people who have a great idea for a new product or a better way of making a product, don't have the money to start a business. They get that money by selling shares. If the government abolished all investing, then no new businesses could ever be created. If the government did allow start-up funding but no secondary market for shares, then it would take so long to make your money back that still nobody would invest. And of course without small participations from the general public, there would be less money available to invest.
As for that general public, owning businesses protects your savings against inflation.