system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How are financial markets any different than Ponzi schemes other than layers of professionalism?
gpt
Because they trade in actual instruments that have value - shares of companies and debt. Owning a share gives you a stake in ownership of a a company, claim on their profits and assets. Debt gives you a financial claim to be repaid at some point in the future with interest. Financial markets trade in these claims, through a variety of instruments but unlike Ponzi schemes the underlying claims produce value - companies sell goods and services and generate profit.