How a stock market should function
1. Company must issue share at face value say 10 rupees
2. Buyer can enjoy dividend and bonus share and benefits like that.
3. If company is doing extremely good the price of the share based on dividend etc shall be fixed by SEBI/company .
4. if buyer want cash he can sell in exchange for the fixed price as in point 3. ( half of the profit must go to company . means if price fixed as 12 then one rupee to company )
5. If price fixed lower than face value then buyer should bear that loss.
looks weird ?
1. Company must issue share at face value say 10 rupees
2. Buyer can enjoy dividend and bonus share and benefits like that.
3. If company is doing extremely good the price of the share based on dividend etc shall be fixed by SEBI/company .
4. if buyer want cash he can sell in exchange for the fixed price as in point 3. ( half of the profit must go to company . means if price fixed as 12 then one rupee to company )
5. If price fixed lower than face value then buyer should bear that loss.
looks weird ?