Company MakeWorldABetterPlace.com creates new thing and makes us all feel better in a directly measurable way.
They decide to create an even better new thing that has heavy capital requirements so they issue stock.
Even better new thing is not as great as we all thought, so stock goes out of favor as market participants channel capital to new and more promising tech companies.
Years down the road, MakeWorldABetterPlace.com, trading on old securities decides to enter the mobile market and creates revolutionary device. Market participants catch on and start channeling capital out from less promising securities and into the old and existing claims on assets of MakeWorldABetterPlace.com. Thousands of businesses and jobs are created by new privately held companies that create new things using MakeWorldABetterPlace.com's mobile operating platform.
So much talent focuses on the buying and selling of securities because it is the most social way to vote directly - by allocating capital. And the product of that capital flow is what is observed as the creation of new products that make the world better in a directly measurable way.
If you don't think liquidity is important, then with it goes the ability for countless tech startups to exit (through their acquisition by large corporations in exchange for claims on existing assets) and use the resulting capital to create subsequent startups, that perpetuate the cycle of creativity.
They decide to create an even better new thing that has heavy capital requirements so they issue stock.
Even better new thing is not as great as we all thought, so stock goes out of favor as market participants channel capital to new and more promising tech companies.
Years down the road, MakeWorldABetterPlace.com, trading on old securities decides to enter the mobile market and creates revolutionary device. Market participants catch on and start channeling capital out from less promising securities and into the old and existing claims on assets of MakeWorldABetterPlace.com. Thousands of businesses and jobs are created by new privately held companies that create new things using MakeWorldABetterPlace.com's mobile operating platform.
So much talent focuses on the buying and selling of securities because it is the most social way to vote directly - by allocating capital. And the product of that capital flow is what is observed as the creation of new products that make the world better in a directly measurable way.
If you don't think liquidity is important, then with it goes the ability for countless tech startups to exit (through their acquisition by large corporations in exchange for claims on existing assets) and use the resulting capital to create subsequent startups, that perpetuate the cycle of creativity.