|Securities are multiple possession of value of money.
In general, source of values of securities (equity, bond etc.) is money
(cash flow) acquired in the future. Securities prices are calculated from
present value of future cash flow.
Money acquired by company in the future is dynamic value received in the
exchange of static value offered by company in the future.
It means money and securities (Value of future transaction) are equal value that securities can be bought with money. It means that value of future transaction (Future cash flow) is involved in present money.
It is explained that money is fractal structure. Money spent in the past
transaction is included in present money.
Buying and selling of securities mean reverse status of fractal structure
of money. (It is natural structure of money that transactions in the past
are included in present money. It is reverse to include future value.).
If the period of future transaction is extended, value of future transaction increases without limitation. If present money is made from value of future transaction, it can be made without limitation. If this situation is permitted, as amount of money that is much more than sum of value of dynamic value (Value of money) that occurs as a result of exchange with static value, value of money decreases significantly. As a result, sharp rise in prices and credit insecurity will be triggered.
It is necessary to prohibit the method to create present money (dynamic
value) from value of future economic transaction. It needs to be borrowing
of issuer, same as the case of equity. Otherwise, as value of money does
not stabilize, financial economic system does not stabilize.
In case of equity and national bond, future value of money is involved
in present money.
--- It is reverse structure of money.
Present --> Future (Natural structure :
Present money is involved in future money.)
Future --> Present (Reverse structure :
Future money is involved in present money.)
To connect both flow, structure of money circulates.