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Answer» following precautions are to be taken while investing in the market : - Make sure your broker is registered with SEBI and the exchanges and do not deal with unregistered intermediaries.
- Ensure that you receive contract notes for all your transactions from your broker within one working day of execution of the trades.
- All investments carry risk of some kind. Investors should always know the risk that they are taking and invest in a manner that matches their risk tolerance.
- Take informed decisions by studying the fundamentals of the company.
- Investing in very low priced stocks or what are known as penny stocks does not guarantee high returns.
- Do not be attracted by announcements of fantastic results/news reports, about a company. Do your own research before investing in any stock.
- Be cautious about stocks which show a sudden spurt in price or trading activity.
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