94 sats \ 1 reply \ @tomlaies 8 Sep \ on: Stock Market: A Telling Example For The Cantillon Effect econ
Politely disagree. The alternative to stock markets is that deals happen in secret backrooms with deal sizes of 100k+. With a stock market the deal size can be as small as three or two digits. And openly traded, which has superior transparency.
The effect of the cantillion effect would be even worse on private dealmaking markets because of information asymmetries.