please tell me the risk factors involved in investing in shares.

 

  • Rakesh 1:46 pm on November 27, 2009

    Every factor that drives the economy influences the financial performance of a company. Think of a company around you growing at a fast pace, say Bharti or R-Com… while they are growing, moble tariff is going down so the profit and stock prices are stagnant. Secondly cyclic nature of the stock, say Tata Steel… sometimes steel prices go up so the stock price and vice-versa.

    Eventually what here matters is the Earning per share i.e Net Profit / No of shares!

    Now, there is a technical angle to it, i.e demand-supply issue. When the price goes up, selling comes in, reducing the demand and consequently fall of stock prices.

    Hence it is also important to have a advisor with u, who understands company’s fumdamentals and technicals. You can certainly write to me if need specif advise.

  • skahhh 1:46 pm on November 27, 2009

    They go down sometimes by a factor much greater than a bank account’s . Sometimes they drop to zero!

  • Jazzy J 1:46 pm on November 27, 2009

    everything that asks for money has a risk factor but if u invest in big names like Reliance money, ICICI direct,Indiabulls…. then the risk factor is less …….

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