The stock market is sometimes criticized as a giant casino in which people act as speculators rather than making productive investment in new physical capital (i.e., the type of business expenditure on plant and equipment that is counted in GDP as Business Investment). Explain ...
A)... how that is at least partly true?
B) ... how that is somewhat misleading, as regards the stock market’s effect on physical capital investment. (Note: The distinction between the primary and secondary markets for stocks is crucial to both of these questions.)