Some misconceptions and misunderstandings prevailing amongst investor class

Some misconceptions and misunderstandings prevailing amongst investor class.



·        When a company enters into new venture it is always profitable to it.
·        When the company launches new product sales will increase.
·        When the company makes any JV, merger, amalgamation, takeover it is profitable.
·        When a company splits share or gives bonuses it’s profitable.
·        When a company makes buy back its profitable.
·        When a company wins some lawsuit it is profitable.
·        When a company announces dividend its profitable.
·        When a company’s share is moved in or out of index on stock exchanges.
·        When face value is split or increased its profitable.
·        And such other things.
·        If economy is growing, every sector and company will benefit.
·        New sectors and novel technology makes more money.
·        IPOs are for good and profit of investors.
·        Brokerage houses and merchant/investment bankers act in the best interest of investors.
·        TV and other media give un-biased reporting and views.
·        TV channel or News paper analysts are all genuine.
·        Everybody earns in a bull market.
·        Everybody loses in a bear market.