Expert Speaks: Even people with low income, scant knowledge are investing

Rabindra Bhattarai President at SRCS and Stock Analyst Why is there increasing attraction toward Initial Public Offerings? First of all, common investors are accustomed to follow the secondary market trend. And as the secondary market is showing an uptrend, its effect is being seen on the primary market as well. Investors find it convenient to invest when the market shows upward trend. In 2066/68 the secondary market was in downward trend, therefore, even the companies with good profit were not able to sell their shares. Secondly, shares of the hydropower and microfinance companies that are already listed in the secondary market are being traded at high prices, increasing the attraction toward the IPOs of hydropower and microfinance companies. Media is another factor that is fueling common investors’ interest in the IPOs. Even people with low income level and scant knowledge are also investing because of the information they get from different media outlets. There is a growing belief among common investors that if you invest in shares and IPO you will make profit.