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kkeskar92
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Speculators Are Useless to Society
kkeskar92 replied to MadMarketScientist's topic in General Trading
Without speculators there would be no capital markets and there would be no businesses. Imagine a new business where only promoters and investors are involved. This business does not do well and investors want to sell the shares...whom do they sell to? ...Brokers? no...Its the day traders and it helps so the share value does not fall rapidly. Suppose business does well.....and some investors want to buy.....its traders who allow them to buy at lower price...if there were no traders....promoters would sell the shares at very high price. Basically traders help in narrowing the bid ask spread and provide efficient market....without them investors and promoters would be non-existent.