On Monday, April 27, 2009 at 11:22:19 (-0400) Doug Henwood writes:
>
>On Apr 27, 2009, at 10:08 AM, Bill Lear 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 have a ton on this in Wall Street.

Yeah, I know but I don't have it at hand.  I suppose I could just
peruse your online version...

I was also interested in the question that I raised about how stock
prices could affect prospects for getting loans for a company.  The
basic argument I made to a co-worker is that stock markets are not
very good for raising new capital --- at least they are not used very
much for that purpose.  The counter-argument is "Au contraire, stock
valuations are used to get financed".  And this, I believe, is very
dubious.


Bill
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