Ok well think of it in simple terms, take it back to its roots.
So if this was 1500 and we were both in England and you wanted to go to India and get some spice and bring it back then unless you were rich you would need "capital", to rent a ship, employ a crew and then buy th spice in India and then bring it back.
You could go to a bank and borrow the money, or you could ask for people to invest in your venture.
Now if I was a bank I would be worried that the ship would sink, or you would run off or the deal wouldn't work, so I would charge you high interest. So that is not a good option.
So Imagine I'm a rich Lord, you come to me and tell me your Idea, I think its pretty good, and I want in, but I'm Rich so I'm not getting on a boat to India. So we set up a company and I employ you. Now I'm a smart Lord and I don't want the risk all on me, so I go tell all my buddies and we all buy shares in this deal, and we all buy into lots of deals so if one ship in 10 sinks we all loose 10% of our money not the whole lot.
So Financial Markets are me and my buddies selling shares in companies, but those shares we buy form the capital that you are using to trade, build, sell etc etc ... hope that helps
PS I think your language is a bit emotive, its not as sinister as it sounds !!
