The Ills of Current Stock Exchanges

In the recent financial meltdown, all stock exchange indexes plunged and in the process many good stocks became devalued similar in extent to those troubled stocks. Fear, panic and no-confidence sentiments ruled then. Many governments stepped in and panic was arrested for the time being. Feelings of fear and no-confidence were and are still prevalent, frontiernews just moments before the next batch of bad financial news.

Companies with solid financial fundamentals but having the value of their shares plummet significantly were helpless in this avalanche. All would want to do something, if possible then, to stop this uncontrollable slide. Many wondered what could be done besides those stimulus packages scrambled hurriedly on-stage by various governments. Improvement, localletter innovation and revamp must lead the way out of this rot.

Any System Not Beneficial To The Masses Will Be Dump

The current systems in the stock exchanges were not safe for ordinary people to grow their money, as evidenced in the recent Financial Tsunami. newspoke I dare say that any investment system which is not good for the ordinary people will backfire and will be dumped. We must look for alternative investment system from reputable companies or financial experts, whose objective is to ensure that money invested from the ordinary people will increase and not decrease.

Breaking From The Current Mold – The Stock Exchanges

Instead of financial institutions and financial investors, one breakaway method is to go directly to the public via the Internet. topicals This approach is sensible firstly because of the perils with the stock exchanges, and secondly, most financial institutions and financial investors were nursing their losses and had become understandably wary of or conservative.

By going to the Internet public instead and not through the stock exchanges, there will be very significant cost saving in launching ‘the initial public offer’ of the shares to the online world. As the cost outlay is comparatively low, and also in order to attract the netizens, tbadaily it may be necessary to give free shares or PEPs (public equity points, similar to shares but without voting rights) to online subscribers. When subscribers or investors get their shares free, there will be no financial harm whatsoever to these stakeholders.

Also, by avoiding the stock exchanges, there is no legal necessity of a closing date for subscription as is the case with the stock exchanges. Each subscriber will be allocated with a certain fixed quantity of shares or PEPs upon successful registration. kulfiy

Another different approach from the current practices is in the way of valuation of the shares. All stock or share values can be greatly influenced by public sentiments currently, despite the strong economic fundamentals underpinning the shares. A different approach could be that the valuation of the shares be done internally ONLY, for example, according to the actual membership growth and sales performance of each enterprise. By this, there is no way that the values of such ‘breakaway’ shares or PEPs be manipulated by speculation and/or panic.

Most importantly, pressmagazines company shares or PEPs which are not listed with the stock exchanges will break away from any impending woeful financial cascading dominos effect, which may come anytime when big corporations released their annual reports. Which healthy company would want to be pull down by the bad news of ill companies? But the present systems of stock exchanges are just too capable of doing so – spiralling downward into a free-fall!

The Only Right Approach – Benefit Ordinary People

The basis of any new approach must be to ensure that ordinary people will ONLY grow their money and not lose money. Before the recent financial crisis, nearly every financial institutions and managers would said that market forces determined all stocks or shares movements. Market forces would drive the values either way – up or down. After witnessing the aftermath of the current financial crisis, there were some deep soul-searching done and some people have begun to realize that there were ways and approaches which would drive the values of stocks or shares one way, i.e., going up ONLY. These enlightened people are now adopting new measures.