Question

Is the stock market "out of control?" How can the poor benefit from this financial institution?

Answer 1

Stock markets exist to serve the wider economy. It helps individuals earn a profit on their income when they invest in the it. Movement in the stock market have a profound economic impact on economy and individual consumers. Stock markets has become very volatile over the years, that's making life more of a challenge for investors as they attempt to navigate the ups and downs. Stock markets meltdowns are great for those who are looking to buy stocks. If an individual makes the right decisions in a falling market, they can earn profit handsomely. Stock markets crashing could actually be good news for the poor investor because they will accumulate more units of shares due to all in their prices. In fact, it the most desirable opportunity for them to increase their investment to earn more profits in future. The years of underperormance tend to be followed by years of overperormance. And those years of underperormance are an excellent opportunity to purchase shares inexpensively.So, the stock market meltdowns are great for thoe who are looking to buy stocks.

The poor also get benefited by this financial institution from the following ways:

• One of the most important benefit of a stock market meltdown is cheaper real estate prices. Unlike stocks, which can correct overnight, real estates usually take years to decline.
• A liquid stock market improves wage growth, overwhelmingly to the benefit of the poor. Values of property decreases during this condition. Those who can't afford earlier can now buy their own homes.
• If the market goes down, inequality goes down, too. Reducing inequality is the most important step a country can take to increase population well-being. So, if market crashes, inequality reducees and helps to improve the standards of living of the poor also.