Stock exchange not only helps in resource mobiliza tion but it has the dimension of transfer of ownership within the economy; this kind of trading however, mostly takes place without making real contribution and physical expansion of the economy. The explosive in troduction of various derivatives and their excessive use with major speculative input has given rise to many ap prehensions, as they have confronted the world with a situation where the balloon is expanding with little safe ty mechanism provided. That is why we see collapses like the one currently witnessed in Mexico, mainly be cause of the unscrupulous and speculation trend in derivatives.
