>Buying and selling stocks allows you to allocate your capital as you see fit. There is an intrinsic difference between the normal flow of money in a basic eco

>Buying and selling stocks allows you to allocate your capital as you see fit. There is an intrinsic difference between the normal flow of money in a basic economy vs. the stock market. Namely it is the: allocation of capital for the sole purpose of selling it at a higher cost and buying at a lower cost. This is entirely different from allocating capital to create a factory, or buy food, etc.. etc.. The net effect of a market that trades stocks like this is negative due to the infrastructure required to maintain it. It's similar to how a casino can be viewed as a net negative to society. HFT is the perfect example of this. Trades made in nanoseconds with no physical meaning other than trying to outplay another automated gambler. > They reward well-run companies and punished mismanagement. Wouldn't it be better for the workers who produce the actual GDP to participate in the upside rather than some rich dude who contributes none of the work? This is the primary driver behind wealth inequality. You would know that if you understood economics. >hey reward well-run companies and punished mismanagement. Any business owner will be rewarded regardless of whether it was owned by a billion shareholders or by a few. Incentive, punishment and rewards are not the result of "capital markets" it exists regardless of whether or not a company IPO'd.