However this is a win-win proposition to all PRODUCERS, BUYERS, SELLERS (DISTRIBUTORS) and CONSUMERS in the economy.
I have filed an application to SEC in this regard and they are actively evaluating it.
Cheers,
rlc - 15 years ago
Really. Twice the quarterly revenue. What do you base this number on? What you propose is really a disincentive to invest at all, not an incentive to invest in small companies, which often have NO revenue for substantial periods. And, there is nothing in your formula that says anything about the debt and assets of a company. Suppose a company is sitting on $50 billion and has no debt. Should its market capitalization be the same as a company with $50 billion in debt but the same semi-annual revenue? Or, what of a company with $100 billion in real assets but $50 billion in debts? How about a company with a forty percent profit margin versus a company with a four percent profit margin, but the same revenue? And what of non-listed companies? Or, companies that are not American? Are you going to tell foreign markets what they may sell stocks for? People will just invest in those foreign companies, where they can get more rational returns, rather than stultified results from a market that cannot legally respond to the value of a company. Your proposal is absurd.
@rlc,
I appreciate your concerns for INVESTORS.
However this is a win-win proposition to all PRODUCERS, BUYERS, SELLERS (DISTRIBUTORS) and CONSUMERS in the economy.
I have filed an application to SEC in this regard and they are actively evaluating it.
Cheers,
Really. Twice the quarterly revenue. What do you base this number on? What you propose is really a disincentive to invest at all, not an incentive to invest in small companies, which often have NO revenue for substantial periods. And, there is nothing in your formula that says anything about the debt and assets of a company. Suppose a company is sitting on $50 billion and has no debt. Should its market capitalization be the same as a company with $50 billion in debt but the same semi-annual revenue? Or, what of a company with $100 billion in real assets but $50 billion in debts? How about a company with a forty percent profit margin versus a company with a four percent profit margin, but the same revenue? And what of non-listed companies? Or, companies that are not American? Are you going to tell foreign markets what they may sell stocks for? People will just invest in those foreign companies, where they can get more rational returns, rather than stultified results from a market that cannot legally respond to the value of a company. Your proposal is absurd.