I have a similiar thought I always return to when I read news about big IPOs- what (if any) value is added by stock exchanges? The only thing I see is the abili

I have a similiar thought I always return to when I read news about big IPOs- what (if any) value is added by stock exchanges? The only thing I see is the ability to use stocks as long-term storage for excess money. * After the IPO, money made by circulating stocks is of no benefit to company in question. * Companies rarely pay out dividends (I usually see that in news, as if it was something special)- so buying stock in hopes of dividends does not seem a good idea. * Publicly traded companies are then put under pressure to meet arbitrary analysts' expectations by majority shareholder(s)- which does little to help company meet it's long term goals. None of this seems to create any value for anyone except stock exchange. So isn't stock trading just a legal way to gamble? I can easily see the value added by banks (handling money transfers so we don't have to deal in cash, trading foreign currency when I need it, etc). Traditional investment is also (meant to be) of benefit for both parties- people with excess money can help fund businesses, which then in turn pay them back from their proceeds. There sure needs to be something I am missing in the stock trading (the question being- what exactly?)