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The Stock Market Is A Necessity

2091 words - 8 pages

The system of buying and trading shares or stocks has been done around the world for hundreds of years. From the merchants of Venice, to the coffeehouses in Britain, trading shares has been done everywhere. America has become the world center for trading. The New York Stock Exchange (NYSE) is the world leader of trading, located on historic Wall Street. Wall Street is a commonly used term referring to the stock market. Thousands of corporations have put their companies into the stock market, with the objective to make larger, more public companies. But even with all of these companies in the market trying to make money, it is still possible that such an institution could fail. However, should such an event take place, the entire world would suffer the consequences. The importance of the stock market is crucial to the way the world lives today. The stock market will always exist because of the need of such an organization, the volume of investors and cash participating in the stock market, the excellent efficiency of the market, and the sheer power that the stock market holds in the world.
The necessity of the stock market is ever present. At times, this trading organization would be more powerful than the United States government. Without this institution, the world as we know it today would not exist. Twenty-four gentlemen signed the Buttonwood Agreement, creating the New York stock exchange, clear back on May 17, 1792. These men were keenly insightful into the principle of modern life through the stock market. “Half of all small business fail after the first year” (Watters 15). For those businesses that succeed and offer a considerable product to the world, a new venue is required. If the stock market were not available, companies would simply fail; making life more expensive, decreasing the standard of living, and eliminating healthy competition in the market place. But yet, there are still many who believe that without the stock market, “only those who hold stocks would be affected” (Watters 20). John Watters would continue by saying that many of the products that people use every day would not be available if the stock market did not exist (Watters 23)
The biggest companies in the market today are ones that provide everything we consider a necessity in American society. Robert Kiyosaki, a very famous investor and author of Rich Dad Poor Dad, stated “As you look back in history you can see some big movers of our social structure. It's amazing, what would we do today without our Microwave, cell phones, cable T.V, computers, jets, and instant replay in sports” (Kiyosaki 27). Companies like Microsoft, Google, Proctor and Gamble, GE, Ford, GM and even Facebook, companies that make the products Mr. Kiyosaki mentioned, are posted on the stock market. These companies make possible the standard of living that is enjoyed today. Without the huge amount of capital gained from entering the stock market, many of these companies, and others just like...

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