Dear President Donald Trump
Over capitalisation of Stock Markets historically caused Financial Crashes.
The cause of over capitalised Stock Markets is too much money being speculated without regard to the fundamentals of investment.
At the age of 29 I was the Company Secretary and Finance Executive of a Public Group of Companies listed on the ASX.
Our Annual Report to Shareholders won Awards alongside the Greats of Australian Industry, Qantas, BHP etc.
In addition to meeting Australian Accounting and Reporting Standards, our Annual Report included comparative figures for 10 years with explanations of significant variances. Our Auditors provided a separate Audit Report for this information.
Conventionally Assets were recorded at the lower of cost or market value which does not reflect the Asset backing of Shares and a meaningful % return on investment. To provide Shareholders and the Stock Market with a meaningful asset backing, all assets were revalued every 3 years. The Audit Report confirmed these asset values. The share price increased as the asset baking and % return on investment increased.
The Financial Statements were restructured so that Shareholders, Secured and Unsecured Creditors could see their Asset backing to protect their interests.
To protect Shareholders on the NYSE, your Presidency should have the above and 2% LIBERTY TAX to provide certainty in Tax reporting, implemented ASAP.
Kind regards
Derek Smith CA