What Stock Means

 What Stock Means : after having watched Netflix 《Explained-The Stock Market》

Stocks look like equal economic activity at first glance.

Companies present their own business plans and people see them and invest in them. Companies develop their businesses with the money and distribute the profits they produce to investors. 

The fact that companies can also expand their businesses, that anyone regardless of class can invest, and that new jobs can be created with them makes them think that stocks are equal economic activities. This also makes it seem that the revitalization of stocks means a boom in the economy. 

But that's not. Shareholders decide to invest in stories known about companies rather than in their own beliefs to make more profits. The story can be true or false. It can be created intentionally by companies or by other shareholders to keep other companies in check. In any case, if the story is found to be false, companies and shareholders will suffer huge losses and jobs will be lost, which will deal a major blow to the economy. 

Friedman argued that in the stock market, only shareholders is needed. They say that the owner of the company is a shareholder and that the company should only fulfill its obligation of generating profits. It also sets the CEO's wages according to the performance of the stock price, and the CEO will try to raise the price. Shareholders were only interested in making profits in a short period of time, and the company's immediate net profit rather than its long-term development. Companies will focus more on cutting costs, such as layoffs and factory closures, rather than trying to promote development. Corporate profits may rise, but they are a huge negative impact on the economy as a whole. 

The stock market was booming and the CEO's wages rose. In the past, the wage difference between employees and CEOs was about 22 times, but in recent years, the difference between the two has been 271 times. The more prosperous the stock market is, the fewer groups benefit. As the stock price rises, inequality intensifies.

 This method of managing Western companies and stocks is borrowed from all over the world through globalization. The world is facing the same problem. This economic globalization is having a huge impact on a country's economic class.

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