The Highest Paid CEO of India tells investors to stay from Small Cap Stocks and Penny Stocks. In These Stocks, Insider Trading can happen. Rather you should invest in Mid-Cap Stocks and Large Cap Stocks. In these Stocks Chances of Insider Trading is minimal. This all things said by the C0-founder of Zerodha, Kamath Brothers in an interview with Indian Express. In Board Meeting It was decided that 3 People will get 100 Crore Rupees as Salary in Zerodha for the Year 2019-20
Why Only fewer People invest in Stock Market?
In India People Sees Stock Market as Betting. In India, People Don’t Look Share Market as Full Time Job. Only 1.5% or 2% of People Invest in Stock Market. In America 60-70% Population invests in the Stock market.
How Zerodha Became Successful?
Zerodha Become Successful because of its Cheap Brokerage as Compared to Other Stock Brokers. In India BEfore the Launch of Zerodha, ShareKhan and ICICI Direct are in the Field of Internet Trading. To Differentiate Ousefl we offer Cheap Brokerage. Last Year due to Lockdown, we grew more Faster.
When Zerodha will be Public?
In Zerodha we have Transparency. No debt is there on us. Currently, No Planning to make Zerodha Public. Entry has also been given to outside investors in the last 11 years. The biggest reason for this is that we think not as an institution, but as an investor.
Investors Should Stay Away from Penny Stocks and Small-Cap Stocks
Trader or Investor, you should stay away from Small Cap Stocks and Penny Stocks. In These Stocks, Insider Trading can be done Easily. Investors or Traders should look for Mid-Cap and Large Cap Stocks. In These Stocks Insider Trading is Difficult. Regarding insider trading, he said that on the basis of internet trading, discount broking, and the way stock market data is publicly available, it would be very difficult for someone to do insider trading.
Cryptocurrency Like BitCoin is need of Future
Regarding the future of cryptocurrency, he said that a cryptocurrency like bitcoin is needed. He said that when the government of the whole world raids the currency, then its value will fall. Due to this, the inflation rate will increase. He gave the example of countries like Zimbabwe and said that inflation is more than ten thousand percent. The cost of bread there is 50 pounds today, then tomorrow it costs 500 pounds. In such a situation, if the price of bread is fixed at 1 bitcoin and remains at the same rate on a daily basis, then people will accept any such cryptocurrency. I think the popularity of cryptocurrency has increased due to similar reasons. Regarding other aspects, he said that due to cryptocurrency, governments and central banks around the world are opposing it, because they are feeling short of power.