Most risky investment for a person is to invest his/her
money in the share market. There are many types of players’ trade in this
market such as corporate houses, insurance companies, Mutual fund companies,
FIIs & retail investors. Corporate houses purchase shares of other
companies to take its benefit in future, if the price of these shares will
increase or to get benefit at the time of merger or acquisition. Mutual fund
& insurance companies purchase shares for their client to give them a good
return in the future .FIIs (Foreign Institutional Investors) are the foreign
companies which want to invest their money in companies of emerging economies
with friendly investors’ policies to get a good return.
The retail investors
are those who buy the share for their own. Some of the retail investors purchase
share in higher quantity to keep it for 10-12 years. But most of these are
small investors who invest their money to get a regular return from their investment.
But, when the market condition becomes worse then the price of share goes down
and at that time companies also becomes unable to give any return (means dividend)
to its shareholders. So, the purpose for which the retail investors bought
their share didn’t fulfilled and because of that they become the biggest looser
in the worst market condition.
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