American stock markets, and those throughout the world, are the primary means by which people invest in businesses. Investment in business means jobs, and the opportunity for profits for owners (stockholders). Yet, most Americans have very little idea of what the stock market does--except, perhaps, crash. Unless a crash were to occur, and another depression were to set in, most people do not believe that the good or ill health of the stock market has any real bearing on them. Instead, they believe, it is the place where the rich get richer, while the rest of the world hopes for a few of the auxiliary benefits of those riches. In fact, there are few institutions that have so much relevance to people's lives as the stock market. And, there are fewer still that offer nearly everyone the chance to participate directly in their processes. Everyone knows, of course, that the stock market is not just a place where a person can make money--money can be lost there as well. But, with a proper, informed approach, many more Americans could be using the stock market, improving economic growth, and benefiting themselves as well. Unless people know more about it, however, this is unlikely to happen. Renovated educational approaches, a different focus in media coverage, and promotions by interested parties, are the three means by which this situation can be remedied.
There are two aspects of Americans' understanding that need to be addressed--they need to understand what the stock market is and how it can be of use to them. As George Nicholson, president of the non-profit National Association of Investors Corporation (NAIC), has noted, capitalism depends on equity money that is made available to businesses. He believes that the system will function better if many more people "(a) understand investing, (b) are educated to do so successfully, and (c) intelligently provide capital to expanding industries" (Nicholson, quoted in Beardstown...