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Stock Market Needs Reformed.

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  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    Ask any person what the stock market is and they will probably say that is a place where you buy stocks to help businesses get financing. I think if people were educated to the workings of the stock market and financing there might be a demand for a reform. The stock market does virtually nothing for startup businesses. Businesses have to be viable profitable proven before they can be offered for sale on the stock market. Money can't even be gotten from the sharks on shark tank unless a proven profitable business is presented to them. The truth is that lots of good paying jobs would be created by restructuring the stock market back to the original premise of the stock market. Financing for businesses. If all the money now invested in the stock market and invested in trades was invested strictly in jobs producing investments, making something to sell, all would be good. Every new kind of technology would be employed to make the cleanest safest products employing the most people for the highest paying wages. Every concept has been exploited to beyond legal definition to generate incomes in the quickest fashion possible with virtually no regard to the best interest of the country. Simply increasing the velocity of money is the concept that would right all the wrongs.
  • Liberal Democrat
    Democrat
    Kenosha, WI
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    Why? people with 401K's are riding the wave and loving it, and they will till it crashes again, then they will hate it.
  • Center Left
    Independent
    Central, FL
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    Stock market loves certainty and a clear path. It was supposed to go south when the stupid untrained newbies were put in the WH. It did not. Increased mostly every day. Money loves money and he is providing for American workers with a 401K savings account.

    The greatest president ever - Thank God he was elected. Sarcasm. But....

  • Liberal Democrat
    Democrat
    Colorado Springs, CO
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    Chet Ruminski Wrote: Ask any person what the stock market is and they will probably say that is a place where you buy stocks to help businesses get financing. I think if people were educated to the workings of the stock market and financing there might be a demand for a reform. The stock market does virtually nothing for startup businesses. Businesses have to be viable profitable proven before they can be offered for sale on the stock market. Money can't even be gotten from the sharks on shark tank unless a proven profitable business is presented to them. The truth is that lots of good paying jobs would be created by restructuring the stock market back to the original premise of the stock market. Financing for businesses. If all the money now invested in the stock market and invested in trades was invested strictly in jobs producing investments, making something to sell, all would be good. Every new kind of technology would be employed to make the cleanest safest products employing the most people for the highest paying wages. Every concept has been exploited to beyond legal definition to generate incomes in the quickest fashion possible with virtually no regard to the best interest of the country. Simply increasing the velocity of money is the concept that would right all the wrongs.

    Chet -- The start up businesses that I know always first borrow from a local bank and do not delve into the stock market. The bank does their due diligence to make sure the start-up has economic viability. Part of that due diligence is to understand the experience and competence of the person wanting to start the business. And that they have skin in the game.

    Business bankruptcies are common place....23,443 in the second quarter of 2017 alone. You can understand why the "sharks" as you call them might be hesitant to loan you money.

    In any case, I would agree with the premise that a business must be able to show some kind of future profitability before being offered for sale on the stock market.

  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    "In any case, I would agree with the premise that a business must be able to show some kind of future profitability before being offered for sale on the stock market."

    Schmidt, That is not the case now. A business has to be a tried, proven, profitable, super star to be offered on the stock market. You proved my point that most people think the stock market is a source of financing for new businesses. An IPO is the mechanism for capitalising a companies success. The percentage of money from an IPO is almost not even relevant to expansion and more jobs.

    straydogcapital.com/jobs-act-stealth-ip...

  • Liberal Democrat
    Democrat
    Kenosha, WI
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    I've found that the difference between buying a home, starting a business are two different things when it comes to financing.

    Buying a home was basically easy, back when sub prime loans were popular, normal people could get a 4% interest rate, because I owned and operated my own transportation biz, I was able to secure a 12.5% interest rate, and was glad to get it.

    My vehicle financing was also higher, 12% on a expedited cargo van.

    If you're trying to break into the stock market with a service or product, you're probably going to be susceptible to being put under a microscope examination before any bank will loan any money to you, you have to have a strong financial background.

    I once asked a stock broker for money to open a taxi cab company in a small city of 125,000 people, he needed all the particulars, cost of vehicles and type, cost of communication equipment (2 way radios), cost of estimated maintenance, and so forth. When I told him it would take 5-7 years to get a return on his investment of $150,000, he backed out of negotiations.

  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    Dockadams That is the exact point I am trying to make. The stock market is perceived as the benevolent USA building organization when in fact it is contrary to that.

    People need to be made aware of the real risk and use their money is placed in.

    The stock market in turn has to direct investments toward jobs producingindustries. It will take new laws, investment directing taxes and repealing some existing laws. The "In the Interest of the United States" has to be defined, applied and differentiated from "Interst of Big Business".

    As it is now under the guise of helping working people the stock market is using everyday investor money for other third party purposes .

  • Liberal Democrat
    Democrat
    Kenosha, WI
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    That's exactly the point the OWS protesters were trying to get across to mainstream Amerika, that the top 1% of this country own 90% of it's wealth. When people support trickle down economics and say that it creates jobs, it does not, the ones at the top are getting richer and richer, which is fact.

    I for one supported OWS protesters because they knew what was going on, the only problems with OWS is that they didn't have a leader, or even have a solid set of demands for reform. A guy like Bernie Sanders knows very well what the OWS movement was about, he even talked about how the 1% at the top were owners of 90% of the country's wealth, and how they got there.

  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    My problem with the 1% having all the wealth is that they stagnate the money. If they invested in research centers, factories, experimental towns supporting industrial centers or anything spending money back into the economy there would be prosperity.

    And they would still have all the wealth, all the property and all the money. And they wouldn't have to hire people to figure out how to give it away.