A stock market is a way for companies to tap public financing. I am aware of the inequality in stock ownership, but it is not "the existence of a public stock market" that creates inequality. The alternate scenario in which all companies are privately financed and owned does not result in greater economic equality. Actually the opposite.…
A stock market is a way for companies to tap public financing. I am aware of the inequality in stock ownership, but it is not "the existence of a public stock market" that creates inequality. The alternate scenario in which all companies are privately financed and owned does not result in greater economic equality. Actually the opposite. Think about it. If you dislike stock buybacks, think of taking a company private as a 100% stock buyback.
For sure. If we're serious though about a more egalitarian stock market, another thing to consider would be a stock ownership limit. One person should not be able to own more than, say, 1 million dollars in stocks. Some number that is a reasonable middle class retirement.
This would reduce stock speculation/manipulation/insider trading. Make it more difficult if not impossible to do predatory takeovers. Would force people with excess capital to instead of pumping up stock bubbles to maybe invest in something more useful, like expanding a business or hiring employees.
Of course I'm just spitballing in a fantasy land here :)
A stock market is a way for companies to tap public financing. I am aware of the inequality in stock ownership, but it is not "the existence of a public stock market" that creates inequality. The alternate scenario in which all companies are privately financed and owned does not result in greater economic equality. Actually the opposite. Think about it. If you dislike stock buybacks, think of taking a company private as a 100% stock buyback.
For sure. If we're serious though about a more egalitarian stock market, another thing to consider would be a stock ownership limit. One person should not be able to own more than, say, 1 million dollars in stocks. Some number that is a reasonable middle class retirement.
This would reduce stock speculation/manipulation/insider trading. Make it more difficult if not impossible to do predatory takeovers. Would force people with excess capital to instead of pumping up stock bubbles to maybe invest in something more useful, like expanding a business or hiring employees.
Of course I'm just spitballing in a fantasy land here :)