Rumours are rife in all the capital markets of the world, more or less. But crossing the limit has always been a matter of concern. Today, most of the new investors come into the market motivated by their friends, classmates, relatives or colleagues. Even college students are getting involved in the capital market, which is harmful for their studies. Very few of them have the basic idea about capital market. They purchase shares basing only on the rumours.
Some people know in advance which company is going to offer rights or bonus. They spread rumours and take advantage of it. As our capital market is growing rapidly, the authorities should take some preventive measures to handle the situation.
At present many well-written and easy books are available in the market. So, the new investors should make their decision based on analysis, and not rumours.