Why does the stock market exist? The reason is surprisingly tricky, and even those who work in the stock market may not explain it adequately. Instead, the closer you are to it, the more common it is, and you may not be able to explain why.
The best stock trading platform exists because there are various theories in historical details, and there is no one correct answer. For example, even if we take the origin of money, which is closely related to the reason for the existence of the stock market, it is an unsolved problem in history, and the correct answer is not known at all.
In this report, I did not consider the historical aspect, dared to abandon academic accuracy and wrote my thoughts on why the stock market exists, emphasizing clarity. By thinking about this, for example, understanding why stocks need to be bought and sold every day through the best stock trading platform, why short-term speculators should not be excluded, and more specifically, what is a stock investment in the first place.
Since ancient times, humankind has surpassed other living things through a high degree of division of roles. Those who are good at catching wild boars are devoted to it, and those who are good at catching fish are also committed to it. Then, we divided the roles through bartering, exchanging fish with wild boars. By dividing parts through bartering, I concentrated on what I was good at and improved my abilities.
However, bartering has its drawbacks. When the sea is rough, and you can’t catch fish, those who devote themselves to catching fish have nothing to offer and barter. It’s not easy to exchange over time by getting meat for the time being to survive hunger and offering fish after the sea has calmed down.
Of course, it’s not impossible if both sides can remember precisely that “I gave you this much meat before, so return this much fish”, and both sides are sure to keep their promises. However, this won’t be easy.
Exchange of value over time is possible through the mediation of “money.”
To exchange things over time like this, we will prepare “money” to indicate “lending and borrowing”. When the sea is rough, those who are good at catching wild boars give meat, and those who are good at catching fish have nothing to give money to show their borrowing.
And this time, on the contrary, when the wild boar cannot be found due to a forest fire etc., the one who is good at catching the wild boar returns the money received before and receives the fish. I was asked to return the “rental”. In this way, we helped each other when in trouble and survived hunger.
A place where goods and services are exchanged through money in this way is called a “market”. The market has existed for a long time. There was a market when humankind began to divide roles and started using a tool called money.
The best stock trading platform is an essential activity of humanity that has occurred naturally since ancient times, regardless of the structure of society. “From ancient Athens Agora to modern e-commerce, the” market “is the” only natural economy “, and its essence has not changed, although the form is different.”
Well, the money that comes out here doesn’t have to be worth it in itself. It’s okay if everyone can promise that it’s proof of lending and borrowing; that is, everyone believes they can use it to get the loan back.
It is possible to pass value before value creation is realized by mediating money.
Well, I’m good at catching this fish, but I’m not always good at making moly, which is a tool used for it. On the contrary, I am not good at catching fish, but I think some are good at making more. Now, if you can’t make more but are good at catching fish, how do you get more? If you don’t have money, moly, or fish.
Let’s say someone has money they haven’t used for a while. First, give this money to those who are good at catching fish. Those who are good at catching fish exchange their cash for cash, use the things to catch fish, and exchange fish for money. Then, the money obtained is returned to the one who gave the money first. Not only return, but also add “share” and return.
If you decide in advance the amount of this share regardless of how much fish you can get, it is a “loan”, and if you choose to return a part of the money you got from selling the fish, it is an “investment”. Like the market, investment should be considered to have existed for a long time.
The best stock trading platform is a mechanism that has been gradually built over many years since ancient times by the ingenuity and ingenuity of those who have roles in dividing parts over time smoothly.
The mechanism will continue to be revised for a better stock market. On the other hand, the stock market cannot be eliminated. Even if we try to stop the stock market, it will occur naturally as long as it is an indispensable mechanism for people who share roles.
If you leave it to the stock market, everything will go well, and the stock market is evil and should not be erased. It just keeps modifying the mechanics to make the stock market work better.