Why do markets work?

Because it takes many people, in many companies, to make a simple cup of coffee … the example in this short video that explains capitalism.

Markets are how companies get money to finance their operations … either through the stock market (stock purchasers are partial owners of the company), or through the bond market (lenders lending money expecting interest payments and principal repaid). With either stock or bond funding, each company in the chain of production of the products you use is able to operate. Being profitable means the people who work in each company can make a living.

A simple cup of coffee … what does it take to put it into your hands?

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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