DON’Ts For Investing In The Secondary Market

  1. Don’t forget to take account of the potential risks that are involved in investment in shares.
  2. Don’t undertake off-market transactions.
  3. Don’t deal with unregistered intermediaries.
  4. Don’t fall prey to promises of unrealistic returns or guaranteed returns.
  5. Don’t invest on the basis of hearsays, rumors and tips.
  6. Don’t be influenced in to buying in to fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or “low” prices or favourable articles/ stories in the media.
  7. Don’t blindly follow investment advice given on TV channels/ websites/ SMS.
  8. Don’t invest under peer pressure or blindly imitate investment decisions of others who may have profited from their investment decisions.
  9. Don’t get misled by companies showing approvals/ registrations from government agencies as the approvals could be for certain other purposes.
  10. Don’t get carried away with advertisements about the financial performance of companies.

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