the stock market gives gamblers a place to go that's more legitimate-sounding than Las Vegas. More seriously, the stock market likely does not exist because it serves some purpose. Rather, it exists largely because it's existed in the past and it would be costly to get rid of, evoking all sorts of political resistance.
On Mon, Apr 27, 2009 at 7:08 AM, Bill Lear <[email protected]> wrote: > 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 > -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
