> I've contributed to a retirement stock account for 35 years, but I still don't know what my investment does for the businesses whose stocks are in my account. The only investments that clearly support a business appears to be venture capital and the IPO. Subsequent stock sales just repay and enrich earlier stock holders and don't go to the business.
> If this be true, there seems to be no benefit to society of hedge funds. Every dollar sequestered by a hedge-fund investor is a dollar removed from the pool of ordinary investors. Can that possibly support the businesses whose stocks are traded by the hedge fund? Why, then, would the inventors of the hedge fund be awarded the Nobel Prize in economics? Why was that hedge fund bailed out during the 1990s?
> I raise these questions because reporters and policy makers seem to care about the index-fund prices. Stockholders like me care for personal reasons. Is there an objective reason, that is a national interest in the index-fund prices?
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