What has GDP got to do with stock price movement? Experts assume that the two are positively correlated. That’s another market myth

One of the most well-entrenched market myths, frequently bandied about by stock experts, is that stocks will rise because economic growth (as reflected in expanding GDP) is at a fairly high level. Among the most common refrains you hear is: “After all, even at...

The Securities and Exchange Commission banned short-selling in 799 financial stocks in mid-September. In the land of free markets, this was shocking. But controversy around short-selling is as old as the markets. Here is an edited version of an editorial on short-selling that was originally published in the New York Times on 18 October 1930. What is remarkable is that none of the arguments has...

Wrong Signal

Indian companies hate the fact that current regulations give retail investors a say in ‘discovering’ the delisting price through the reverse book building (RBB) process. Ever since the delisting rules were framed, companies have lobbied incessantly to drop the price discovery process. Later, they began to adopt tricks such as passing board resolutions even when the RBB process...