The Science of Stock Market Investment - Practical Guide to Intelligent Investors Quotes

“someone simply puts his money without analysing anything, then he can be said to a squanderer who does not value his own money.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“When the fixed return becomes negligible, people naturally tend to divert their fund towards shares. There was no surprise why SENSEX kept on going up. More”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“For more than a decade Japan has been maintaining an interest rate just above naught.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“We the Indians are becoming stronger. Not long time back we required at least two strong young men to carry groceries worth Rs 200. But times change. Now a five year old boy can effortlessly carry items worth same two hundred rupees.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Most of the people begin their entry into the stock market as investors. Over the passage of time they are infected by speculation bug. They”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“If you entirely construct your decisions based on broker’s words, you might sometimes gain and sometimes loose. Notwithstanding that what you fail to notice is that your broker would always make money.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“And finally, you are lucky enough to learn things at the expense of three years and 2.5 lakhs. There are people who paid much more for some trivial lessons.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“As such, I don't detest trading. I would rather like to be sure on what I am going to trade on. Otherwise better prefer flying to Los Vegas to try my luck.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“how to make money in a day?' I am completely convinced that any person who has an answer for this question won't need to make money by selling his 'tips'.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“People who made great fortunes in stocks were not addicted traders.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Before wrapping up this chapter, let us look at one of the deadly scams in the Indian primary market history. There was company named ‘MS shoes east’. Shares of this company traded in Rs 150-200 range throughout the year 1994. But towards December 1994 it spurted to Rs 500 without any justifiable rationale behind the raise. Its promoter Pavan Sachedeva and his broker artificially manipulated the stock price to this level.   By February 1995, the company devised an expansion plan for an estimated expense Rs 700 crores. It proposed to raise around Rs 428 crores by means of Fully convertible bonds. These bonds were to be sold at Rs 199 each through public issue. The idea was to provoke people to subscribe the issue with a hope of converting this bond of Rs 199 to a share of Rs 500.   Well, his brokers was constantly buying the stocks from the open market to maintain the price at that high level. But the situation had already worsened. He had bought too much and had too little money at hand that he could not pay the stock exchange for all the purchases he made. BSE could not give money to the sellers of that security. Things turned out to be serious. You may find it hard to believe  - the BSE was shut down for three consecutive days without any business.   Before this drama came to light, FCD ('Fully Convertible Debenture) public issue was a big success and it almost stole the show. Delighted by the overwhelming response from the investing community, MS Shoes had announced to close the public issues few days before the stipulated time. The world came to know that the cruel plan of manipulating the stock price was only to push the bond issue successfully. Even the authorities woke up to the problem. The company was issued a notice. And also it allowed the investors to take back their FCD application. Almost all the investors took back. Even the underwriter refused to buy the unsold portion of the issue because the company had voluntarily announced to close the issue before the end date. The ruling was in favor the underwriter. Sachedeva declared himself to be innocent. MS shoes office resembled a mourning house with  deserted look.   There was one Sachedeva who came to light. There were and probably still are more of them out there.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Economy is directly affected because of secondary market. Primary market is not like that. Money raised directly flows into the hand of companies. That is deployed in new projects and businesses ventures. They in turn create more employment opportunities and tend to produce goods that eventually enhance the quality of living standards.   Some greedy promoters throw ordinary middle class retail investors out of the system by selling their companies at high prices and subsequently hurting those retail investors. This is a bad omen for the economy.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Economy is directly affected because of secondary market. Primary market is not like that. Money raised directly flows into the hand of companies. That”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“activities instead of non-productive tasks. The”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“All of know the extent to which the service and operational efficiency of public sector banks improved after disinvestment. We”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Dry and dull primary market with very little retail participation in the secondary market is considered as the indicators of bear phase coming to an end & reversal of trend. This”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Board constructed by people from the same family, major portion of the profit depleted as directors’ salary, profit suddenly raising the year before the public issue, no clear justification as to what the IPO money would be used for were indicators apparent in the offer document sufficient enough to alarm any alert investor.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Somewhere in 2004 a company called SAH petroleum came with its IPO at Rs 35 each share. It’s market price was tarnished into half in two years since then. At the same time, it is interesting to note that SENSEX doubled during the same time frame. Anyone”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Jet airways and Biocon are market leader in their respective fields, at least when they went public. Their issues were priced highly, it was believed. They made no good for the investor who choose to invest with the company at the time of public issue.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“These symptoms are deadly dangerous. Most of the bull runs across the world were brought to an end by high priced public issues. It is therefore imperative for investors to be extra careful during these hyperactive times.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“All of us keep learning. As human beings we learn to walk, talk, ride bicycle, swim by consistent practice. Every things requires time. Making mistakes and rectifying those mistakes by constant retrospection are parts natural growth process. And”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Anyways, whenever you are going to buy shares or units of a mutual fund anytime in the future take the stand of a middle class father buying jewels for his daughter’s wedding. Never ever align your investment selection habit with a ultra-fancy rich girl’s cosmetic purchasing habit.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“It is natural for the market to go through bull run as well as bear run. During bullish phase, many unknown companies would come out with IPO. Sometimes they would gain anywhere between 20 percent to 100 percent on the very day of listing. Demand”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“An unknown software company with fifty plus workers (do I need to call them software engineers or analysts?) would price its issue at a valuation higher than that of Infosys. Even that would be received by the market with both the hands open and chest wide. People”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“This impression or belief is blindly wrong. I am not trying to detest every IPO. But the fact is, considerable number of companies hitting the market with new share have a hidden agenda of snatching maximum possible amount of money from the general public.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Well, coming back to public issues and small investors, it is worth mentioning one example from ICICI bank. Towards the end of 2005 ICICI bank conducted its FPO to raise close to Rs 5,000 crores. It was announced that retail investors would be allotted shares at a rate fiver percent below the cutoff price determined by book building process.   Every other section of investors were allotted shares at Rs 525 each. The same shares were offered to retail investors at Rs 498.75. A company can propose to issue shares at different prices for different categories of investors. Such a facility is known as ‘differential pricing’. That would happen only if the company feels it would be difficult to get rid of the supply to a particular section of investors. Otherwise,”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“After one year by the end of May, 2007 Vijay Mallya of Kingfisher airlines announced to acquire 26 percent stake in Deccan aviation. The stock price slowly inched back to Rs 145, almost the IPO price.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Sadly for few companies, such as Air Deccan, they had to issue shares when market started to correct from the then peak. The response was poor. The company tried to attract investors by lowering the price band from Rs 150-175 to Rs 146-175 and also extended the last bidding day for initial public offer. That was hardly sufficient. After it got listed in the secondary market shares plummeted to Rs 64 levels. If”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Many of those IPOs hit the market when the trend was upward and mood positive. So they could cheerfully raise the money.”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors

“Some companies made their IPO investor loose more than 60 percent of their original money. Many”
― Chellamuthu Kuppusamy, The Science of Stock Market Investment - Practical Guide to Intelligent Investors