Extracts From One full page analysis on Stock market current status and Risks is given below.
Risk 1
A new breed of players has entered the stock market. Unfortunately they do not understand the market risks and rewards nor how their monies are invested. They are driven by greedy intermediaries playing with and profiting from the hard earned savings of these poor people.
The money passes through many hands of intermediaries. These intermediaries as well as the original investors have no record of who the final fund managers are. Lower middle class monthly salary earners, housewives and elderly retired persons in the suburbs of the cities, finding it difficult to manage the adverse effects of the increased costs of living, are targeted by these intermediaries.
Their modus operandi is to provide a large return on capital within a few months, purportedly made by investing in the stock market.
Risk 3
Are market manipulators having a field day? Why are regulator led investigations taking so long? Why are obvious manipulative transactions not being acted upon with timely and firm response action? Why are some of the well known manipulators allowed to hold high positions?
What is the truth behind the market talk that you can sell any quantity of stock at a profitable price in the market if one is willing to put Rs. 1 million behind the sale strategy-related expenses and with a few millions put behind such an offer that you can sell any quantity of stocks at the price dictated by the seller?
Read the full story here.
http://www.ft.lk/2011/03/03/buried-mines-time-bombs-under-stockfinancial-markets/