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Tue, November 26, 2024

Many stock investors lose money for not understanding the business: ICB chairman


Published on 2024-11-26 11:09:00 - Bill Williamson, WOPRAI
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  • Many investors use margin loans to make quick profits in the stockmarket, but due to poor decisions made without understanding the business and the impact of the loan, they lose both investment and confidence in the market, said Abu Ahmed, chairman of the Investment Corporation of Bangladesh (ICB).

The article from The Daily Star discusses insights from ICB Chairman Minhajul Islam on why many stock investors lose money. He emphasized that a primary reason for losses in the stock market is the lack of understanding of the businesses in which investors are putting their money. Islam highlighted that many investors are swayed by market rumors and short-term gains rather than focusing on the fundamental analysis of companies. He stressed the importance of understanding a company's business model, financial health, and growth prospects before investing. Additionally, he pointed out the need for better investor education and the role of institutions like ICB in providing guidance and fostering a more informed investment community. The article also touches on the broader implications of uninformed investing on market stability and investor confidence.

Read the Full The Daily Star Article at [ https://www.thedailystar.net/business/news/many-stock-investors-lose-money-not-understanding-the-business-icb-chairman-3762206 ]
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