Amazing stuff but enough to confirm that buying of or (Repeated consecutive high trades) in an illiquid stock raises eyebrows . I guess the primary purpose is to ensure that the buyer knows what he's doing and is not some unfortunate being manipulated or misled by someone.

Originally posted by tigershark buying is the buyers problem. due dilligence   r the most imp 2 words in the stock mkt.no point opening oxford dictionary to find out meaning of due dilligence after one has bought

That's why the letter was issued?

Not everone is gifted or talented. The idea is to protect and educate readers of newspapers and is not meant for RJ's, WB's of the world or those who think they are the epitome of knowledge...


Edited by Hitesh Shah - 18/Aug/2009 at 4:40pm

I agree that stock selection and liquidity are two separate aspects. Since SEBI cant/ doesnt do much about quality of stocks listed, it simply mixes the two. Low liquidity does make a stock easier to manipulate, but if one is careful on the research part, one can ignore such quotes. I was invested in stocks which used to fall 5-10% in a single day, with just 500-1000 shares traded, but i used to just ignore that price.

1. Basantji, please correct the spelling to "illiquid" in the topic title.

2. Today's Free Press Journal (Mumbai print edition) has a one page notice by some Bengalooroo vakil listing his client's portfolio which he wants to dispose of.