Over the last two years, Bangladesh stock market has been a dream avenue to make fortunes for the millions of small investors. So many people is now involved in the share market directly or indirectly. This is particularly visible in the long lines in front of the banks for depositing IPO (Initial Public Offering) share money on scheduled dates. Some companies are being oversubscribed by even 40-50 times. Also many people, not quite aware about the market nitty-gritty, have been involved in the secondary market. As a consequence, with the recent burst (actually market corrections?), almost everybody already lost a sizeable portion of their capital.
After my return from USA two months back, I came to know that one of my good friend, who serves in a utility department and had no clear idea or even interest before about the share market, invested a good amount of his savings in the stocks last year. Being advised by someone he knew, my friend purchased stocks of mainly banking sector at the high rates of 2007. I became surprised to know that most stocks bought by him are of low quality banks. Result-the current market value of his shares are almost half of his costs. He confessed his ignorance about the financial health of the companies he bought. What a dangerous step to lose the hard earned savings! It's like an attempt to swim in river before learing how to swim.
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