1.

What precautions must be taken before investment?

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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