Promoter's salary is actually low. Adding Profit linked incentive (commission) it becomes high. This shows he is more invested to generate higher profits for the company and his belief in growth. One should not be penny wise pound foolish
Many people have been saying Economy has been messed up by the current Government and government's focus has been missing on the economy. Have been blaming Demonetization and GST for last couple of years. Read on. Let's find out
Some assumptions before we start
1. Economy Grows on Liquidity which is oxygen for growth, you liquidity out, market & economy will die off. That's why economies world over bounced off on QE after the world's second worst crisis in 2008. Did everywhere the Home asset prices recover to the level's pre 2008
2. Any reform done by govt, has a gestation period for it to play out and make an impact and no it is not a month or two but mostly a year or two at minimum to play out
Pump & Dump - It is an operation carried by operators - can be done on both quality & non quality stocks
It's like giving steroids to underaged to become mature early !!
Most likely candidate for this operation r stocks with 1. Bad fundamentals/Debt 2. Illiquid equity 3. Story
When questioned, Operator's modus operandi
1. Block 2. Show some hypothetical story or future story 3. Let loose some minions singing praises 4. Show their names as the one's invested 5. "Buy button lies with person buying"
Why do Retail investors fall for it
1. Operator says, made 150 times in 8 years 2. People ask how - "no what's past is past" or show some fluke 3. Hit's the subconscious with statements - "Retired from rat race" or "Financially independent" - everyone's goal, bound to attract