Discussion Question

How big is the US economy in terms of GDP? Which country has the largest GDP? Which country has the largest economy based upon PPP? Have you ever thought about what is happening when you purchase a share of stock in a corporation? Let's use Apple, Inc. (Apple), as an example. Suppose you go to a stockbroker and request to purchase one share of Apple stock. You are effectively giving over some form of currency in exchange for a piece of paper that says you own a given percentage of the Apple. You may have never seen the Apple headquarters and you may be completely unaware of the assets that Apple owns. Nonetheless, you feel confident in exchange your currency for this certificate of ownership with the understanding that you will be able to enforce any rights granted by that piece of paper. If the share entitles you to vote for corporate directs, you have a means and method of enforcing that right. If the piece of paper entitles you to a dividend from corporate earnings, you can enforce that right against the corporation. A strong legal system provides the security one desires when purchasing an interest in a corporation. In turn, Apple uses your invested funds to trade or undertake transactions. This sort of economic activity strengthens the economy. Would any of this be possible if you and the millions of other owners of Apple stock did not have the confidence to purchase that piece of paper? [ht_toggle title="Discussion Input" id="" class="" ]

• The US economy is the biggest in the world with a GDP of $19.39 trillion, edging out China which comes in second place. In terms of PPP, though, China is the world's largest economy with a GDP (PPP) of $23.15 trillion closely followed by the U.S.As $19.39 GDP (PPP). In the growth of economies, buying shares of stock in corporations plays a huge role. Stockbrokers make it easy for members of the public to decide on what corporations to invest in, and the stock market has been a significant contributor to the modern economy. Stock market trading fosters economic growth primarily through the mobilization of capital, risk sharing, and transfer. Whenever members of the public buy shares of stock of a certain corporation, say Apple, they are able to accumulate capital to fund their activities or invest in various projects which return profits in the long run. Primarily, the pooling of funds for the business activities of a corporation plays a significant role in the growth of economies.