Don't Take a Blind Leap in Stock Market - Do Your Research

By Abbas Mirza

March 06, 2023 (MLN): Investing in the stock market and real estate is a careful and thoughtful process, not unlike Snow White's approach to choosing her prince.

Instead of kissing every frog one encounter, it's essential to do thorough research and seek guidance from qualified investors.

Some individuals believe that they can find the right share by blindly following recommendations from anyone, rather than seeking advice from qualified investors.

However, this approach is flawed. Instead, it's essential to be discerning and conduct proper research to make informed investment decisions, much like Snow White carefully chose the right frog.

It is suggested that one shouldn’t get too carried away with this analogy. Because, unlike fairy tales, real life doesn’t always have happy endings. 

So be a wise and emotionally intelligent investor and do thorough homework before investing in any asset class. 

Wherever in the world one is, one has to be abundantly cautious even while investing in IPOs coming into the way in prevailing economic conditions.

The offering documents should be evaluated and given financials last performance and projections must be assessed to determine real value.

Many companies would inflate profits by showing inflated receivables, and may only be seeking investments not just for expansion but for being able to ensure excessive/lavish operating expenses are comfortably met through your investment in their company. 

*The writer is a C-suite executive and former regulator with extensive experience in capital markets, banking, media, advertising, and telecom. Known as a thought leader in regulatory compliance, financial crime, business operations, and capital structures.