Sunday, November 29, 2009

Stock Value has to be made Real

Respected All,

Stock Value has to be made Real.

The fundamental principle behind issue of stock is

Purpose
1.Stock gives additional working capital ( or cash flow ) to the operations of a company.
2.For operational purposes, to help Transferability (liquidity), the stock was allowed to be traded.

Today,
1.Selling price or sale of a stock ( except IPO ) DOES NOT CONTRIBUTE TO THE WORKING CAPITAL
2.There is too much of gambling in trading of stock which has gone beyond acceptable limits.
These two factors leads to inflation in all countries.

Solution:
0.Every unit of Stock sold has to be tracked by an identification number (Just like currency ).
1.IPO HAD TO BE DONE AT THE FACE VALUE ONLY
2.ONCE STOCK IS PURCHASED, IT CAN BE SOLD AT THE MARKET VALUE ONLY AFTER THREE OR FIVE YEARS.
OTHERWISE, Stock has to sold only at purchase value + dividends received.
3.Automated selling and buying of stocks has to be stopped.

INFLATION LEADS TO WEALTH REDUCTION IN THE NATION AND FOR INDIVIDUALS ( since the purchasing capacity of the money falls )
It initially appears that someone who has stock of company "A" is at 30.
It affects who ever who buys the company "A".
But for the buyer, the cost of the company is higher and it leads to Inflation.
THIS IS HOW THE WEALTH OF A NATION AND INDIVIDUAL IS LOST.

WE NEED TO BRING BACK POWER TO THE MONEY ( but not to the commodity )
The commodities prices are going on increasing with the increase in stock ( No one seems to observe this )

FOREX TRADE esp in the internet HAS TO BE COMPLETELY ABOLISHED.
All international transfers has to go through CARDS ( like Visa etc ) all over the World.

The inflation is very high in USA.
For example, the housing in California has gone up by 10 times in the last 20 years.
Why the government is not bothered about it?

Every country has to be self reliant.

It is required to fix the stock market.

The problem is the selling price of the stock.

Future is more powerful than money. It will crush the money power.

We are completely operating on fictitious money.

Stock does not contribute to GDP.

No development when something is selling at 10 or 100.

We need to put real projects to bring a country better.

Stock market only kills the development of a nation.

We need to put an end for abnormal growth or fall of stock

We need stock to become real.

Please read the following url.

http://yba3cu2o7b.blogspot.com/2009/11/stock-prices-has-to-be-made-real.html

http://yba3cu2o7b.blogspot.com/2008/10/money-universal-force-needs-one-law-and.html

Thanks and Regards,
N.Rajeaswar.

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