What would have happened if there were no stock exchanges?
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 SWH |
The free enterprise system as we know it would cease to exist. There would be no way to get new businesses started by IPOs, new product development would come to a halt. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Without the stock exchange this could not be done. /// |
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private |
Nothing, the world worked just fine before them. |
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Ninja grape juice |
It is impossible for there not to be one. You would have to eliminate all businesses to get rid of it, and even then it would still be around in some form. For example, if a company pays out 5 percent of its total assets in a year to a flour company, it's just like the company owner saying "You give me free flour for a year and i'll give you 5% of my assets". Over time the stock market would re-emerge. It is inherent in our economic system. |
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Veston Pants |
There would be no publicly traded shares. xxR |
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 Mopar Muscle Gal  |
I wouldnt have a 401K |
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 webboffin  |
no stock would be exchanged |
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beauty |
then shares would not be traded publicly, and shares would not be bought by the common man except the big guys who can afford a millioin of it. |
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