How do you avoid getting stuck in a stock that ends up being removed from the stock exchange? First, always pay attention to the fundamentals. This is because based on our investigation, there are several issuers whose shares have been suspended and have the potential to be delisted due to a sluggish business and not recording revenue. Make sure the issuer has business activities that can be sustainable and even profitable for the future. Additionally, you can read more at alphabetastock.com if you wish to know more info regarding the stock exchange.
Investors must also be more observant about the company by studying financial statements. As for reading these financial statements, it should not stop at profit and loss. But it should go deep down to footnotes.
From the footnotes of the financial statements, we will know the number of sources, for example, the company’s income sources, the company’s largest customers, the contribution of each business line to the total, a list of customers who owe a lot to the Company (Accounts Receivable), the company’s short-term debt maturity and so on.
One way to see if an issuer is in “trouble” or not is by looking at a special notation given to the company by the Stock Exchange.
Special notation is a letter with a special meaning given by the exchange to the issuer. The notation usually appears in stock transaction applications.
Furthermore, don’t believe the recommendations carelessly. Recently, there have been many influencers in the world of capital markets. The stock exchange authorities have directly warned investors not to easily trust anyone’s recommendations. Don’t join in carelessly because those who follow will always lose to those who are followed.
Some experts suggest that the public or investors have a qualified understanding of investing in the capital market. Such as an understanding of fundamental and technical analysis about the stocks to be collected.
Thus investors have adequate knowledge of products in the capital market in the form of stocks, mutual funds, and other products. So that investors will not be easily influenced by share pumps.