It is pretty obvious to most of us, but still it deserves a mention ….here…
Stock exchange is the ultimate tool of personal thought. If you think Infosys share price is going to go up, put your money behind it.
This is very difficult in a Russia or a China – so the basic thing is GO AND VOTE.
Also remember only a democracy allows plurality of thoughts. One person can feel that Tata Motors is doing well in China and US and is therefore worth buying….and another can feel that Tata Motors is not doing well and therefore worth selling.
The worlds Free Markets – a pre-requisite for a stock exchange to be able to run successfully – can survive ONLY in a democracy. So France, UK, US, India, …..are the equity markets of the world. Sure, you have a market in China – but how much of the truth and how much of the fear is captured is not known.
The equity market is the most efficient allocator of resources – it rewards companies which are doing well and punishes the laggards. This happens seamlessly, regularly, and efficiently.
However in a ‘Centrally’ run state like China assets are allocated by one government babu and that leads to corruption. Also there is no research recognised, or encouraged. It is virtually impossible to get accurate figures in China – what you get is govt. doctored figures which may be far far away from the truth!
THE MOST IMPORTANT LESSON from this post is:
EQUITY MARKETS WORK ONLY IN A DEMOCRACY……..SO GO OUT THERE AND VOTE………….LET INDIA BE RULED BY INDIANS…..
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