How Anil Ambani Lost Wealth?

Few Months Back, you MUST have heard the NEWS that, Anil Ambani is the Biggest Looser among the Forbes Billionaires. Anil Ambani has lost almost US $ 30 Billion of his fortune.

So How Anil Ambani Lost Wealth? How he lost Billions of Dollars? -

Is it because he has made huge losses in his various Reliance Group Businesses?

Is it because he invested this much money somewhere and lost that Money?

Well, It is not so. This is the Loss of Valuation in the share price of various Reliance ADA Group Companies. This is the “On Paper” Loss only. In reality, Anil has not lost a single rupee. See This is How it Works…..

Suppose, You are the owner of the Company having 10,000 Shares having a price of Rs.10 per share. So the Total worth of the Company will be Rs. 1,00,000 Right? (10,000 Shares multiplied by Rs.10 for each share).

Now you are the Promoter of the Company so you own 60% Shares of the Company and rest of the 40% shares are in the Company. So Your Net Worth is Rs.60,000 Right (6,000 shares multiplied by Rs.10 for each share).

Now the market goes down and the share price of each share of your company becomes just Rs.5 per share. So Now your Total Net Worth is Rs.30,000 only (6000 shares owned by you multiplied by Rs.5 per share).

So you have made Rs.30,000 loss right? Because previously your Net worth was Rs.60,000 but now your Net worth is just Rs.30,000. But Wait…… This is just the “On paper” Loss. Because this is just the Valuation of your Shares in your own Company. In reality, you have not loose the ownership Control over the Company because you still own the 60% Shares of your Company.

And on the top of this, your Company is profit making. It has not made any Loss. So  you can take as much money as you want from your company to maintain your life style. So This is how your life style won’t be affected because you are still the owner of the profitable Company.

So Understand Now? The above explanation applies to Anil Ambani and every other Billionaire in the Forbes List. The Loss in their Wealth is just the “On Paper” but in reality, their Life Style has not been affected at all…….!!!!