What would happen if the stock market was abolished?

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GlasgowGirl

Facilitator
Jul 22, 2008
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Genuine question - given the havoc that has been wreaked over the last few days due to short selling, and the more general uncertainty that is created by fluctuations in the stock market, I began to wonder what would be different if there was no such thing?

Please note I am not a closet Marxist trying to bring about the overthrow of society via the medium of internet forums. I'm just curious: what changes would we notice? How would life be different?
 
Tony

Tony

What Consumer Founder
Apr 7, 2008
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I guess you would have to ban the trading of stock as this would still happen whether the stock market was there or not - it just evolved to make the process easier. If that did happen the UK would dive into recession as the amount of cash this industry generates really drives our economy.
 
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katealpha

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Sep 1, 2008
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After reading your comment, Tony, I was curious to see how much of UK GDP (Gross Domestic Product, basically a country's income) comes from the world finance sector, and according to this article in Finance Week, it is only 7-8%.

Finance overall makes up 30% of GDP but most of this is domestic activity.
 
TVDinner

TVDinner

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Sep 28, 2008
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The way the economy is currently set up and the way companies are currently valued, if the stock market was to be eliminated - the entire economic system would collapse. It would be choas and millions of people would be bankrupt, out of business, jobless, etc.
 
Tony

Tony

What Consumer Founder
Apr 7, 2008
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katealpha said:
After reading your comment, Tony, I was curious to see how much of UK GDP (Gross Domestic Product, basically a country's income) comes from the world finance sector, and according to this article in Finance Week, it is only 7-8%.

Finance overall makes up 30% of GDP but most of this is domestic activity.
Click to expand...
I stand corrected, I think I was getting mixed up with finance in general and the service sector.

Tony
 
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