precautions

Here are some useful pointers to bear in mind before you invest in the
markets:
§ Make sure your broker is registered with SEBI and the exchanges and
do not deal with unregistered intermediaries.
§ Ensure that you receive contract notes for all your transactions from
your broker within one working day of execution of the trades.
§ All investments carry risk of some kind. Investors should always
know the risk that they are taking and invest in a manner that
matches their risk tolerance.
§ Do not be misled by market rumours, luring advertisement or ‘hot
tips’ of the day.
§ Take informed decisions by studying the fundamentals of the
company. Find out the business the company is into, its future
prospects, quality of management, past track record etc Sources of
knowing about a company are through annual reports, economic
magazines, databases available with vendors or your financial
advisor.