Friday, August 6, 2010

Should Indian govt control vague share market sensex system and link it to company production?

Most of the industries are showing only 15-20% profits,but the share value shows increase from 4000 to 15000 in sensex.Anybody can say it is all fake and simply to mix black money to capital values of industries without paying any income tax or assests tax.Is indian govt capable and seriously interested to check it or it is all Manmohans' economics.?Should Indian govt control vague share market sensex system and link it to company production?
Indian minds are so conditioned by slavery to the belief of all mighty God like Govt. and so reluctant to use and ciltivate the great brain power within individuals to first know things adequately that problems can be understood and proper, meaningful solutions can be found. Please do not come to the conclusion that Govt. is an intelligent and all powerful animal: it is not. Rather, govts. are the most foolish institutions that human's have to tolerate for law and order. Govts. can't solve any type of economic problems at all but are good at creating economic distortions and problems for the citizens. Please think over. If the divorces and the killing of brides are widespread, will one ask the Govt. to fix who will marry whom and how they will behave among themselves?


No. Similarly, prices of shares in the stock market should depend on what the buyers and sellers think they are right for them. No one will buy if they think the prices of a share is high and no seller will sell at a price which he considers low. Different buyers and different sellers will have different views about what price to buy and what price to sell. The market prices in the stock market and the sensex fluctuates because of the interactions of buyers and sellers. No one cheats anyone. Everyone who buys or sells shares do it voluantarily. Why should prices of shares be fixed by some thoird party other than buyers and sellers. Are the car prices fixed that way or the gold and jwelrt prices fixed by third parties? Also, remember the price of a share has nothing to do with what profits a company made in the past but what prices a company will make in future years as compared with other companies. No Govt can predict what different companies will do in future and therefore cannot decide about share prices. Those who want safe investmenets should invest in Govt. securities on which Govt. gives guranteed return. They should not gamble in stock markets. How does it matter to most Indians with such low levels of income to invest in stock markets and become concerned about rise and fall in share indexes. Share market investment are for wealthy persons to do: let them make money or loose money. Why we bother and tell them that the share prices should be fixed by Govt. Why are we so concerned if some rich persons loose money in the stock markets. We are poor people, the majority Indians, have nothing to gain or lose from the stock market as we should avoid the stock markets as much as possible.


Read more intensively about stock markets, why they exist, why prices go up and down, who gains and who loses there and how and who should void investing in stock markets before giving expert opinion about how market prices should be fixed by Govt. rather than the market forces of demnd and supply. Let the Govt. do their basic jobs right: minimise violence, protect the lifes and properties of people from terrorists and criminals, see that there are enough roads and they are maintained well, the govt. departments provides prompt service to citizens, help the poor and others afflicted by natural calamities expeditiously and effeciently. If Govts can do that only, it would be great.Should Indian govt control vague share market sensex system and link it to company production?
thx man ur ans helped me alot in my gdpi ,,,,,,,,,,,for mba

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