SEC asks small investors to be more careful
Tuesday, 17 July 2007
Refayet Ullah Mirdha
The Securities and Exchange Commission (SEC) has asked small investors to be more careful in investment in the stock market as the prices of some shares have become overvalued.
Higher officials of the SEC, the share market watchdog, said the small investors remain vulnerable in an overheated market.
"It will be more woeful for the small investors if they incur losses in share trading with the money borrowed at high rate of interest. Currently, the stock market is largely dominated by the institutional investors," said executive director of the SEC, Farhad Ahmed, at an informal press briefing at his office Monday.
He said the institutional investors, in most cases, can make up the losses, but the small investors can hardly do it as the amount of their capital is very small. "So, our main concern is for the small investors. The SEC always warns them to be more careful about the stock market trading," he said.
Talking to the FE, another executive director of the SEC Shuvra Kanti Choudhury said the small investors have risks in investment on the stock markets. They should always analyse the fundamentals of the markets and companies before investment.
"Investors should not come with their hard earned money to the stock market listening to rumours," he said.
Executive director of the SEC (Surveillance) Anwarul Kabir Bhuiyan said in the past, in any market debacle, the small investors had to bear the brunt of the losses, not the institutional investors.
The SEC officials said historically the supply of shares in the stock markets increases after December 31 and in the month of August after the completion of half yearly financial assessment.
They said the SEC will take necessary actions if any fault is found in transaction in the stock market.
The Securities and Exchange Commission (SEC) has asked small investors to be more careful in investment in the stock market as the prices of some shares have become overvalued.
Higher officials of the SEC, the share market watchdog, said the small investors remain vulnerable in an overheated market.
"It will be more woeful for the small investors if they incur losses in share trading with the money borrowed at high rate of interest. Currently, the stock market is largely dominated by the institutional investors," said executive director of the SEC, Farhad Ahmed, at an informal press briefing at his office Monday.
He said the institutional investors, in most cases, can make up the losses, but the small investors can hardly do it as the amount of their capital is very small. "So, our main concern is for the small investors. The SEC always warns them to be more careful about the stock market trading," he said.
Talking to the FE, another executive director of the SEC Shuvra Kanti Choudhury said the small investors have risks in investment on the stock markets. They should always analyse the fundamentals of the markets and companies before investment.
"Investors should not come with their hard earned money to the stock market listening to rumours," he said.
Executive director of the SEC (Surveillance) Anwarul Kabir Bhuiyan said in the past, in any market debacle, the small investors had to bear the brunt of the losses, not the institutional investors.
The SEC officials said historically the supply of shares in the stock markets increases after December 31 and in the month of August after the completion of half yearly financial assessment.
They said the SEC will take necessary actions if any fault is found in transaction in the stock market.