DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Corporations and Limited Liability not Shariah Compliant

**Beriilosal** · 07-19-2012, 10:10 AM

Who determines how much a company is worth? It will vary from analyst to analyst. If people speculate, thats entirely upto them, you cannot stop a man from paying £10 for something you would only value at £4

In theory that's OK. But the problem comes when things like revenue and cash flow, and especially future revenue forecasts are deliberately misrepresented by the company (often in ways that are not illegal). It's an inherent part of how the system works.

I think the views of the stock market here are a bit too harsh. To say its rife with corruption seems to be a bit of an overstatement. I'd like some more proof before believing that.

If you can be more specific about what kind of proof you are looking for, I'll be happy to do my best in pointing you in the right direction.

I've been very careful during my time on this site not to state things of which I have little knowledge as being fact, but I do feel this is one subject where my opinions are adequately qualified. I mentioned before that I had built up a company shortly before the Cambodian stock market was launched, which is where much of my opinion and experience on the subject comes from. If you want "proof" of that, here's article written around that time: http://i290.photobucket.com/albums/l...4/scan0005.jpg ).

As for actual evidence of widespread malpractice, I think the latest UK banking scandal is a pretty good indication of how widespread the issues are. If bankers were openly patting each other on the back for illegally manipulating interest rates, just imagine what goes on behind closed doors at private equity firms.

07-19-2012, 10:10 AM	#13
Beriilosal Join Date Oct 2005 Posts 468 Senior Member	Who determines how much a company is worth? It will vary from analyst to analyst. If people speculate, thats entirely upto them, you cannot stop a man from paying £10 for something you would only value at £4 In theory that's OK. But the problem comes when things like revenue and cash flow, and especially future revenue forecasts are deliberately misrepresented by the company (often in ways that are not illegal). It's an inherent part of how the system works. I think the views of the stock market here are a bit too harsh. To say its rife with corruption seems to be a bit of an overstatement. I'd like some more proof before believing that. If you can be more specific about what kind of proof you are looking for, I'll be happy to do my best in pointing you in the right direction. I've been very careful during my time on this site not to state things of which I have little knowledge as being fact, but I do feel this is one subject where my opinions are adequately qualified. I mentioned before that I had built up a company shortly before the Cambodian stock market was launched, which is where much of my opinion and experience on the subject comes from. If you want "proof" of that, here's article written around that time: http://i290.photobucket.com/albums/l...4/scan0005.jpg ). As for actual evidence of widespread malpractice, I think the latest UK banking scandal is a pretty good indication of how widespread the issues are. If bankers were openly patting each other on the back for illegally manipulating interest rates, just imagine what goes on behind closed doors at private equity firms.
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