Why do the stocks rise when the fed cuts rates?

I Just started investing I Would like some opinions on why does the fed cut rates to fuel the stock market. I think that the
bears benefit from the rate cut since the interest on their position becomes lower . Like I said I just started research in investing so please excuse me if I sound moronic. I would also like your opinion on the rate cut cant the fed just cut rate on
morgage that are family based not on investments instead of cutting rate all across the board the dollar is getting killed and what the fed is doing it is not helping.

Ok I understand but how do the people in long positions beneffit from rate cut is not the rate cut good for people in short positions ? I think that more people go short because interest are so low (on sertain stocks) now should not the fed raise rates to get the people thatt are short out of market.

The Fed loans to major banks. The banks in turn loan to companies, smaller banks, and people. The reason that stocks usually rise with interest rates cuts is two fold:

1) If loans are have lower interest rates, then it is cheaper for companies to borrow money and purchase/invest as needed. (This is how the housing bubble was created. Loans were so cheap, the same monthly payment could buy a more expensive house. Buyers don't care as much what the price of the house is; they mainly care about the size of the monthly mortgage payment.)

2) Let's say you had a safe investment (Treasury Bills) that gave you 5%, and a risky investment (stocks) that gave you 10%. Which would you chose? Now what if that safe investmest only gave you 3%? As the Fed (safe) rate drops, the better riskier investments look as alterantives.

In answer to your other questons, the Fed can't force banks to refinance home loans (although Congress could).

Just to be clear, here's what I meant by invest:
Let's say Toyota wants to build a new plant. They may not have enough cash (or want to save some cash for other things), so if they can get a loan for 8% they are more likely to build the plant than if the loan is at 10%. Report It

There's an inverse relationship between stock price movements and interest rate movements.

Traditional models of equity pricing involve the interest rate in the denominator. So when the interest rate decreases, the resulting stock price increases.

What is happening is that the fed is destroying the income of every man, woman and child in the US. They are trying to prevent an economic collapse (hence the rate cuts) but in cutting the rates they are driving up inflation, meaning the money you in in the US is worth less...note the rise of most international currencies against the US dollar in the last year, plus the rise in precious metals.