Why share market exists ??

The intermediator role   

    A market is a place as same as a vegetable market. You buy live foods for an amount according to their value. The share market substitutes live foods with the company's share. A bridge between you and the company. But, if a business needs money it can be offered by banks or from asset liquidation. If you borrow money unofficially, your words are the collateral. Businesses have the obligation to pay back the sum in periodicals to the lender. That's constant asset removal which is on work producing income to the business and falls away from being lucrative

    

    The equity (market) never compels the organization to pay the money within a fixed time interval. It's so much flexible for the company to have an infinite amount of cash without affecting its financials. The shareholders will enjoy privileges such as dividends and capital appreciation. They never ask the company to repay the amount or the company isn't bound to answer the lenders on what they do with the money.

 

      What if the invested amount drops?? You don't have any right to question the CEO. That's where the risk comes in with or without jaw-dropping rewards.

    The only reason the market exists is to make profits without repaying pressure for the needy corporations and not to make money for you or me but for the wise.

Finbolts