Ok, I don’t mean the traders that buy the stock directly from the company, but the ones that trade it for profit.
Ok, I don’t mean the traders that buy the stock directly from the company, but the ones that trade it for profit.
25 Aug
10:56 am on August 25th, 2010
they teach us that gambling actually is legal.
11:41 am on August 25th, 2010
Hopefully with their winnings, they contribute to organizations in needs.
12:39 pm on August 25th, 2010
They provide liquidity to the market allowing people who want to sell to do so when they want, in the hope of making a profit. By transferring risk to themselves, they make secondary markets possible. Without a secondary market, people won’t buy IPOs,and without public offerrings, the capital raising ability of companies would be greatly reduced.
12:43 pm on August 25th, 2010
The whole stock market contributes to the economy by allocating capital to where it’s most effectively used.
And stock traders are an essential part of the stock market mechanism because without their trading activity the stock market will not work well.
Stock market traders contribute to society by making the economy more efficient and effective in fulfilling the needs of the people.
1:31 pm on August 25th, 2010
Much of the trading time and energy is wasted on day trading, which is mostly noise unless you are the trader; but some investment in longer term really can have a huge impact on production.The most important liquidity comes from banks and other fininacial institutions not day traders.