‘Forest’ friends in Dalal Street
3 weeks, 6 days ago

‘Forest’ friends in Dalal Street

The Hindu  

With its tricky jargons and complexities, the stock market is a maze-like labyrinth that often perplexes new investors. Let’s assume Hari had purchased one share of ABYZ for ₹125, after which the market crashed bringing the stock to ₹25. But, owing to the fall, Hari’s portfolio now has six shares costing ₹250, thanks to the market crash and averaging. Likewise, these investors turn a Nelson’s eye to any bad news in the market, in the hope that the news would disappear on its own. They just blindly believe that “all is well, when really all is not well.” Let’s assume that an Ostrich investor heard it through the grapevine that ABYZ will pull down the curtain soon, and that’s the reason its shares fell like ninepins from ₹125 to ₹25.

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