The Stock Market Resource Allocation Effect

Stock market actions as an intermediary of the capital demanders and providers, it offers financing and allocates resources by the price signal, it supervises capital demanders by" some systematic arrangements and protects the rights and interests of the investors'. So the stock market has two basic functions: one is financing, another is efficient allocation of resources. The set up of the stock market changes the way to allocate resources only by plans, making the market becoming the way to allocate social resources. Along with the rapid increase of scale and the perfect of economic functions, the stock market has become an important factor to affect our economy. Efficient allocation of resources in the stock market means to lead the flowing of resources by share price and realizes the reasonable allocation of resources, it regards share price as the core, it relates to the national property policies and has some marketability. Accompany with the development of our stock market and its rise and fall, take full use of its efficient allocation of resources has become the urgent matters. There are two measures to take use of the efficient allocation of resources in stock market: one is the added resource allocation, by adjusting the structure of share issue it makes the resources added into highly growing companies; the other is the allocating of the resources existent, by mergers and acquisitions, it allocates the resources existent again. The allocating of resources added express on these ways: in the issuing market, it choose the companies which listed and the shares issue; in the trading market, it makes the flowing of resources and adjusting the industries by fluctuate of share price; it also effect on the behaves of financing and investment. The allocating of resources existent expressed on these ways: by mergers and acquisitions and assets recombining, it adjusting the industrial structure; deepen the reform of corporations and protecting the investors' interests. However, theefficiency of our stock market doesn't do well, it can't reflect the market information in full, the pricing system and the efficiency of information convection are not take full use. So the inefficient allocation in stock market is the primary represent. Form analyzing the means and efficiency of resource allocation in stock market; we can come to a conclusion that the primary of our inefficiency allocation is the limitation of system, the " overtaking developmental strategy, the unbalance arrangement ' and administration of the stock market, the limitation of property right lead to unclaimed proprietor in listed companies, the invalid management and some serious problems of attorney. In order to enhancing our efficient allocation of resources in stock market, we should orientate the role of our government, change the structure of the market and reform the property rights quickly. We also should perfect the rule of law and the way to drop out; at the same time we should perfect the monitor of regulations. Use the analytical methods in this thesis, give an example of listed companies Of Tianjin, we demonstrational analyze the status quo of resource allocation, and it makes us understanding the efficient allocation of resources in our stock market better.