Stocks Are Robbing the Wealth of the Individual and Nation

Respected All,

Stocks Are Robbing the Wealth of the Individual and Nation

The pricing of stocks need some correction which has to be done by SEBI

Let us take the example of Reliance Power.

The face value of stock of Rs10 was sold at Rs 450.

Why does SEBI allow the IPO at a premium value and not at the FACE value?

We have the following questions
Did the remaining 440 rupees go the working capital of the company?
The Real Wealth R450 has been reduced to Rs 10.
Stock market has robbed this Rs 440 from the investors for the value of Rs 10.

This is causing inflation.

THIS HAS TO BE STOPPED ONCE AND FOR ALL.

IF the shares were traded at face value, there would be more investors
and they could have got profited from the business.
Now their earning is 1/45 times less.
Wealth is lost for the individual and the nation.

Let us take the business of Reliance Power.
It has to produce power and sell it to the government.
Power is a administered Price and it takes 25 years to break even.
During that time and in future they could only get normal profits.

During this tenure how does the Stock price increase?

A REAL STOCK PRICE CAN ( OR SHOULD ) INCREASE ONLY IF THE DIVIDEND INCREASES.

The pricing of stock needs a fix which has to be based on Real values
(i,e) dividends and not on any other metrics.
SEBI has to fix the upper limit of the pricing of all stocks
for the nations to prosper in the future.

The last buyer is the loser.

I want to bring to the notice what happened to privatisation of Power
in California.

The company took all the surplus which was kept for purchasing power
in bad weather conditions.

The CEO's and top officials took the money and they declared bankruptcy.

Since Power is essential, California government again bought back the
Power industry.

This implies that

ALL PRIVATE PARTICIPATION IN BUSINESS HAS TO BE MONITORED. We need to
check it to be real.

The same is the case with the pricing of stock.

GOVERNMENT AND ORGANIZATIONS HAS TO CHECK THE PRICE OF EVERY COMMODITY
INCLUDING STOCK.

THE LAST BUYER IS THE LOSER (Along with the nations wealth ).

Thanks and Regards,
N.Rajeaswar.