38. On the Stock Market:A stock market divorced from fundamentals is essentially a disguised casino.

Stocks are commodities with tangible value, manifested in two ways. First, holding shares makes one a co-owner of the company, entitling them to a share of its current value proportional to their equity stake. Second, it grants a stake in the company's future value. Precisely because stocks possess real value, when someone seeks to sell, there will be buyers willing to purchase. The purpose of establishing a stock market is to facilitate transactions between buyers and sellers of stocks.

Since stocks are valuable commodities, the stock market is not a zero-sum game. Investors may see their holdings depreciate due to declining company performance, or gain profits from rising corporate value.

However, stock markets worldwide have long deviated from their founding purpose. All have degenerated into disguised casinos, where stocks serve merely as gambling tokens rather than tangible assets. Gains and losses are entirely detached from intrinsic value. Neither buyer nor seller cares about intrinsic value anymore. All investors fantasize about overnight riches through stock speculation. Yet like gambling, punters never profit—only the house and bookmakers win. In this casino-like market: Fund companies, securities firms, insurance companies, and other investors with capital and information advantages are the house; ordinary investors are gamblers who are constantly fleeced. Though investors are repeatedly plundered, the self-serving nature of human beings ensures they are always ready to be plundered again. Precisely because of this, the government, securities firms, and the house can repeatedly feast on plundering investors.

Despite the stock market's increasing casino-like nature, trading cannot be banned. A market economy must provide investors with both exit routes and avenues for investment. To address this casino-like transformation, two solutions can be implemented.

First, do not restrict companies' freedom to list. Any company meeting basic legal requirements should retain the right to choose whether to go public. The stock market exists to facilitate the buying and selling of shares, a need every company may have. Given this, what justification exists for discriminating against different companies? In democratic nations, citizens are equal regardless of wealth, and companies founded by citizens should naturally enjoy equal rights regardless of their founders' financial status. Some may argue that allowing all companies to list would inevitably lead to widespread fraud. This concern is clearly unfounded. If every company can list, why would any need to fabricate information to gain access? Should fraud occur, any company found guilty of deception should be uniformly prosecuted for fraud, with a system where the first to report the fraud is exempt from liability. Additionally, such companies should bear substantial liability for compensating investors. This would be sufficient to eradicate market fraud. Furthermore, when every company can go public, the market will have an ample supply of stocks. With sufficient stock availability, attempts to manipulate stocks for speculation become significantly more difficult.

Second, restrict stock trading frequency. Absolutely prohibit frequent buying and selling within short timeframes. For example, prohibit selling any stock within 60 days of purchase. Limiting trading frequency imposes significant uncertainty risks on manipulators, inevitably deterring those attempting stock manipulation. This greatly restricts the possibility of stock speculation. Moreover, restricting trading frequency does not affect those who genuinely value stocks and purchase them based on intrinsic worth. True value investors would never buy stocks only to sell them shortly thereafter.

In summary, implementing these two measures can restore the stock market to its intended function and prevent it from becoming a casino. A truly democratic nation would never permit its stock market to degenerate into a disguised gambling den.