I should know the answer to this, but the general purpose of the stock market is clearly not to raise new capital for businesses.
What broader economic purpose does it serve? I've heard that stock price can be used to leverage loans for a company, and therefore it is an indirect means of raising finance, but this seems exceptionally dubious, as I would assume stock price is the last thing a lender would look at and would instead look at standard "balance-sheet" things (EBIDTA, existing debt, etc.). I this roughly correct? Bill _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
