Being Smart

“The stock price has sunk to Rs.5/- per share”, Aryaman screamed in shock while checking the share price of a company on the verge of bankruptcy.

Just before the National Companies Law Tribunal could officially declare them bankrupt, a saviour appeared to repay the debt, and the stock prices started surging again.

“But why didn’t he do so earlier?” There was a question in his not-so-financially literate wife’s eyes.

“He was buying the dip and will resell the shares at a higher price to recover the amount he paid for the bailout.”

“So the shareholders who lost money have financed the bailout without getting a  controlling stake in the company.”

“You are getting smarter,” Aryaman looked at her indulgently.


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