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Investing in stocks is one of the best ways to get good returns. You would have heard stories of people becoming millionaires after investing their money in a good company. But that didn’t happen in a day; they would have realized the fruits of their investment after say 15 or 20 years. Patience is very essential when you are an investor in Stock Market.

Company’s Management: This plays an important role in a company’s growth and future prospects. Understand the key persons, promoters of a company and find out their management practices. Company’s debt-equity ratio:

This ratio indicates the percentage of money financed by banks and shareholders.

Don’t buy stocks based on rumors: Emotion should not be the deciding factor while buying stocks. Based on rumors, don’t take any investment decision.

Preservation of Capital-the priority: While investing in a stock, preserving your capital and minimizing risk should be your priority. You should know clearly on how much money you can afford to lose.

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DR NAVEEN PRASADULA

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Q: How do you choose a good stock in Indian stock market?
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