There is no denying that timely measures taken by the government have made the stock market a good place to invest. However, it is disconcerting to note that still the stock market is influenced by unscrupulous traders. According to report published in this daily on Saturday, unscrupulous traders are investing in shares of low capital companies and in companies which are stopping production rather than good companies. Following them, many general investors invest in these risky companies and lose their investments.
Experts opine that, the regulatory body should take legal action against the manipulation cycle to protect the market and investors. The government should immediately prepare the ground to bring in some good companies in order to develop a long-term financing capital market.
Adequate measures needed to be taken
by the government to make the stock
market a safe place for the investors
All in all, the effects could lead to a decline in investments, stock prices, trade volumes, and market value of the companies listed in the stock markets. In this regard, the government can play its part by adding stimulus and government-backed bonds in hopes of a sustainable economic recovery. Therefore, stockholders and investors would need to keep a watch and rebalance their asset provision to avoid potential losses.
Plundering money is not something new in the stock market. Small investors therefore always get trapped in this hole. Hence, they need to be really careful before investing in the stock market. Before investing in any secondary market, they must have a thorough idea of the company where they will be investing. Small investors in the stock market have to adjust and come up with a variety of strategies to sustain their capital. Therefore, adequate measures needed to be taken by the government to make the stock market a safe place for the investors.