Investment Strategy In Capital Market
1. Buy in Prime Market , Sell Once Entered in Secondary Market This strategy is used because of investor confidence that the price will rise once a stock is listed on the stock exchange. This is based on the assumption that underwriters will not let prices fall in the first week on the secondary market. In the strategy of buying in the primary market and selling in this secondary market are many examples that can be taken. Despite the assumption that underwriters do not let prices fall in the first days in the secondary market, there is a point but in applying this strategy investors also remain guided by the stock price to be released with the price of shares of the same kind that have been recorded. This price comparison needs to be a concern because it could be lower IPO stock price than shares already recorded or vice versa. To that end, investors need to compare prices with the earnings of both shares that will be released with shares already recorded. Although not always t...