Re:Suck It, Wall Street
by BobbyJo on Thursday January 28, 2021 @11:53PM
(#25954093)
Depends on how you define 'wrong'.
The purpose of the stock market is asset allocation, to ensure capital is used efficiently. Companies with high stock prices can issue shares to invest in their business when needed. People are voting with their money for companies to live or die. In that sense, certain forms of 'manipulation' are indeed wrong as they decrease capital efficiency in the system.
You can argue that the stock market has ceased to function this way already, but to that I'd say: two wrongs don't make a right.
The purpose of the stock market is asset allocation, to ensure capital is used efficiently. Companies with high stock prices can issue shares to invest in their business when needed. People are voting with their money for companies to live or die. In that sense, certain forms of 'manipulation' are indeed wrong as they decrease capital efficiency in the system.
You can argue that the stock market has ceased to function this way already, but to that I'd say: two wrongs don't make a right.