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What is the relationship between the stock market and war? Look at the Japanese stock market before and after World War II.

After the war, the old blue-chip companies were in dire need of money to rebuild their ravaged factories. To get the money, they sold new stock to banks, insurance companies, and anyone with capital. These stocks are difficult to sell to individual investors because they fear that those companies will issue shares in the future, thus diluting their own shares. Later developments proved that they were right. But that dilution is beneficial because the influx of capital ultimately makes these companies world-class competitors. The first stock issued was New Nippon Chemical in April 1946. Over the next year, according to Albert Arichhauser's book "Stock Market Wars", 24 more stocks were issued. .

By 1947, the public was interested in buying stocks again. Stock brokerage companies began to hire young people as salesmen (most of the old salesmen were killed in the war), and these younger generations are very good at creating famous sayings. One of their classic statements is "Buy a stock." "Peace" was a well-known brand of cigarettes at that time, priced at 50 yen per pack. The tobacco company that produced "Peace" brand cigarettes promoted its own cigarettes, which made the average person in the early post-war period I smoke 1 to 2 packs of this brand of cigarettes a day. Those who buy stocks buy wealth, while those who buy cigarettes buy a bitter pill that harms their bodies.