NYSE and ME

<BLOCKQUOTE>quote:</font><HR>Originally posted by benz_ethix:
What is the relationship between investing in the stock market and Christian stewardship?<HR></BLOCKQUOTE>

That is actually a very broad question with a lot of potential paths of discussion. Speaking in very general terms, the stock market in this country is one of the major ways capital is generated for our economic system, which is based on free enterprise, private property rights, and the rule of law, among other things. Our economic system goes hand in hand with our political system in helping provide freedom and opportunity for hundreds of millions of people. Compare this with the stagnant economies in other parts of the world.

Investing in the stock market means that you are a partial owner of the company in which you have invested and that you are providing it with capital to use. You get a return, hopefully, for the use of your money in the forms of dividends and stock price increases.

As Adam Smith explained in 1776 in "The Wealth of Nations",the market is guided by an "invisible hand". The market is the sum of individual choices, measured by people having the ability to pay and paying for those choices. So in many ways the market is neutral but reflects what a society really values. It expresses those values far more efficiently and freely than any other mechanism known.
As a Christian, a good steward invests his money prudently in companies that he perceives are sound and have good values.
In the real world, it is sometimes very difficult to trace the interconnections of various companies. Or the real effects of some of their policies. But we should try.
Also,too many people look on the stock market as a way to gamble legally, hoping for lightning to strike.

Karen (who has a degree in Economics)

 

<BLOCKQUOTE>quote:</font><HR>Originally posted by benz_ethix:
[QB]......I also will be risking capital to buy stocks that may profit me. A business man doesn't necessarily know the minds of consumers until he tries to sell the goods. Right? So I think that I can be a good steward if I can make educated inform decisions about investing..../QB]<HR></BLOCKQUOTE>

Yes, and risk and interest are related to each other. More risk means a greater potential interest rate. George Gilder over the years has written several things about a Christian and capitalism that you would probably find interesting. He points out that a successful businessperson generally, over the long run, in a non-monopoly situation, makes money ultimately by being a servant to his customers. Private enterprise is not only the most efficient mechanism for prosperity, it also best allows Christian virtues. (Compared to a command economy.)

Karen

[ January 10, 2002: Message edited by: Karen ]

 

Investing is not gambling!

Investing is necessary (unless you want to work the rest of your life).

Investing takes many forms: CDs, real estate, stocks, bonds, own business, etc.

As for the NYSE, in my opinion, investing in stocks of established companies is much safer than starting your own business.

[ January 10, 2002: Message edited by: webmaster ]