Expert: Paul Henneman - 6/7/2010

Question
Would their be investing, and stock markets in a socialist economy?
I wouldn't think so since every business is state owned, and there is no real competition, and I don't think the state would need to access to capital. Thanks, let me know!

Answer
Mike,
  Thank you for your question! Yes, I believe you have it correct: there cannot be a stock market in a true socialist state, because socialism contradicts private ownership.   I did find this very relevant article online for more on this:

http://mises.org/daily/144

  If this is for a school related project, be sure to quote the source if you use any of the information in the article.

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com