A checklist to understand the various kinds of risks while buying stocks
R Balakrishnan
Whether you buy a share of HUL or buy one of ABC or XYZ, returns are not guaranteed. What we try to aim for is to minimise the riskiness of buying shares and hope that the market will reward us for our diligence. I agree that solid analysis can, generally, spot frauds, but not each and every one. Usually, I avoid government banks simply because the accounting standards keep changing every year. Similarly, many other industries can also throw up problems for analysts. Accounting standards are getting ...
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