Question

How Can an Investor Profit in the Stock Market?

How Can an Investor Profit in the Stock Market?

Homework Answers

Answer #1

An investor can profit in the stock market in the following ways:

1. He can influence the market by bulk purchase or sale of goods.

2. He can purchase or sell on different indexes such as NSE and BSE, therefore different price quotation, earning arbitrage.

3. Due to the availability of large funds he can diversify the risk.

4. He is a big player can influence the market and have perfect information.

5. He can make use of the market irregularities and ups and down in the economy.

6. He even has an option to invest in currencies, commodities, futures, forwards and swaps thereby safeguarding the investment.

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