We all see ourselves as investors, but do we ever know our contribution to the financial system? The hope of profit when we put our money into a company, product, service, stock or bond is all we think about as investors, but being an investor is more than just making money.
To be honest there are no small investors, we are all essential to making this financial system work as we provide the necessary capital to start or grow businesses. This helps to boost the economy when we invest in new companies and products and by bringing new technology and innovation to market.
Why I am targeting investors this time is based on a question recently posed by a friend, he says; investors are among those who contribute badly to the financial crisis in the economy. This is not true as investors play an important role in the economy by providing resources to businesses, stimulating the economy and bringing new technology and innovation to market.
It seems he is mixing it up because we have a different role as investors in the financial system and can be categories
Cooperation with financial institutions to raise capital
Purchase and sale of assets
Act as an intermediary in the financial system
But most of the work that helps people survive in this time of economic collapse is aided by jobs created by investors who help them bring new products and services to market.
Similarly, there are three main types of investors:
Primary investors are those who put money into a business or project with the hope of making a profit.
Secondary investors are those who buy shares in a company after the primary investors have already bought them.
Tertiary investors are those who buy shares in a company after the secondary and primary investors have already bought them
The investors are responsible for helping to increase the value of the money supply, which I believe the government cannot do alone if there are no investors to stabilize the financial system by investing in businesses that are likely to succeed and help prevent the financial system from stabilizing the financial system. collapses.
The role of investors in the crypto market
They take on the role of the crypto market by providing liquidity and helping to raise capital for companies, and by helping to price assets, when assets are bought and sold quickly and at a fair price, it helps keep the financial system stable and the economy and stimulate growth. also helping to control prices in cryptospace.
In general, investors help form a buffer between banks and the public.
The role of investors in the commodity market
Investors play a very important role in the commodity market by providing liquidity and price discovery and also helping to prevent market manipulation and price bubbles.
In the past, if a company wanted to increase production, it had to first get the farmers' permission to negotiate to buy their crops at a lower price and then sell the crops at a higher price. This process was called cartels.
But today the process of cartel formation has changed. Companies can now increase production by buying up vacant stocks of the raw material in question. This is called dumping, and it is a way for companies to push down raw material prices.
Investors play an important role in preventing dumping by injecting liquidity into the market. This is done by buying up the available stocks of the raw material in question. When this happens, the price of the commodity rises and the companies that dumped the commodity are forced to sell their shares at a lower price.
In Conclusion
Investment is a critical part of the financial system and without investment we would not have the stability and prosperity we enjoy today. Therefore, don't join people who say that investors are bad people who cause a financial crisis, but build your future by investing.