Remove PE Ratio From IPO Requirments

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Remove PE Ratio From IPO Requirments Status: Please read our response

Detailed Description:

I propose that we drop the current standard of a required 40 PE ratio in order to IPO a corporation. This proposal stems from the fact that is can be fairly difficult to IPO an enterprise controlled corporation, due to the extra cost of country resources used when in an environment that is not built solely for the success of the corporations. The rule also makes it difficult to IPO a corporation that has been around long enough and have been successful enough to reach higher market values, making it very difficult to IPO these corporations after they exceed +800B in market value. Lastly, a corporation must be somewhat successful in order to reach 600B in market value, making PE ratios unnecessary. Vote YES if you think PE ratio should be dropped Vote NO if you think the requirements should not change.

10 gamers voted for the proposal.
3 gamers voted against the proposal.

The proposal has been ACCEPTED.

W3Creative reaction:

The profitability of corporations has improved recently and it is easier than before to make a corporation profitable. Cost is declined, including the contribution to the country and other costs too.

The PE ratio is an essential part of the valuation of a corporation and its strength. Going public should be limited to the best corporations and should be a priviledge. In the real world, it is very difficult to get a corporation to the market and there are severe tests of profitability.

The PE ratio will stay but changing market conditions may allow for it to be raised or lowered. The main consideration is the proit capacity as related to the value of the corporation.

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