Downfall in stock market

[psycho saint]

now a days we can see that share business has become a very hot topics..after the enormous fall of share business in 1996 we have seen that in 2010 its index has raised so high that it broke all previous records.but the decline rate that has been started now has also overlapped its previous history.
i would want to share my little knowledge regarding this downfall.when we use to buy share we had to pay a value for shares which is known as book value.and this process is called IPO.but now there is anew process that is using in case of pricing the share,the market now including a premium for their shares.it seems to me that they are taking all the creams before the mass ppl can taste the flavor, so i like to say all the ppl who are investing in share business should be careful.

[Faiyaz]

The SEC could've imposed the bank loan limitation of single credit holders to the OTC market and after evaluation it should've imposed the same to the working market. And govt. is gonna bring 17 billion IPO to recover the downfall... 

[psycho saint]

Dear Faiyaz,
Thank u 4 adding this important views of yours.and i would like to say that a syndicate is working behind this.i am not saying this to oppose any one but the downfall of 17 january and the rise in 18 january made me to say that.i would like to say that the fundamental shares like bank, should also issue some right shares to ,manage the current condition and to help the stockholders to continue their transactions..

[Faiyaz]

Saint, I was exactly thinking the same thing... Right shares should be issued to motivate the people. But on the other hand it would not be helpful as the SEC had regulated the loan limitation to discourage the existing share holders to buy maximum amount of shares...

[psycho saint]

I agree with u and one thing..it was a good step by imposing the loan option but it is also risky for the investors who has less capital...

[Faiyaz]

Perhaps no... Coz the loan ceiling (100 crore) was to prohibit the exisiting holders to buy more shares so that the persons who haven't got the opportunity to buy shares could buy... And the premium at the share stuff was also quite demarketing, against the existing shareholders to encourage newer ones. That's why right shares are inadequate, coz it'll again increase shares of the previous ones.     

[goodboy]

Saint bro.........

can you tell me about the downfall of this share market that have suddenly took place????

& as you said that right share can be a solution for it to overcome the situation...............is it sufficient???

[psycho saint]

dear good right share is not sufficient but i guess that it can be a primary measure to cope with the condition.
and as far i guess this downfall was a trick of some stock gamblers who did it for a short term profit gaining...

[goodboy]

Yes saint, I also thought so................Thanx for your replay.......

[psycho saint]

u r welcome... 8)