Sorry but... WTF are you talking about?
It rewards self-destructive behavior in favor of short-term gains. Shareholders have *zero* commitment to the companies they buy shares from and will happily switch their entire portfolios on a whim. It's essentially people chasing the new shiny thing every single day.
Let's not forget it's a known fact that people with insider knowledge will profit over everyone else.
How is that efficient in any shape or form?
> If they undercut the US companies and are willing to accept low returns on their investments, then the respective USA competition will be driven out of business by their investors, because there will be other sectors to invest in, with higher RoI.
You're basically explaining one of the reasons stocks are a horrible idea for distributing resources.
It has nothing to do with whether or not it's central or distributed, it's merely the incentives they create. It's essentially Goodhart's law on steroids.