Why do we use the stock market for the economy?

Question

Why do we use the stock market for the economy?

Answer 1

Only a large sum of money can make some things happen . You got two choices. The state or the individual. A corporation becomes an individual and gets money to invest.

Answer 2

Think about it for a second and it become pretty apparent.  What would you do if you wanted to start a pizza joint...you would go to the bank.  But, the banks will only lend you so much money.  So, in order to get the finance you need, you sell stock in your company.  The people who buy the stock become part owners in the corporation.  Also, this is kind of diversification.  When you issue many shares of stocks, you spread the risk among more people.  Of course, you can't get rid of all the risk, but this helps....