The problem isn't the stock market but the fact that company owners (shareholders) don't share in the liability of a company. This is entirely a creation of the government. Take that away and the world would be very different.
That is not true. Shareholders can lose everything if the stock thanks.
Lack of liability means you can't lose more than the value of your shares. You can't be liable for damages done by the company.
That exists outside of the stockmarket though. Corporations and LLCs are protected from liability.
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