Without doing any proper analysis I invested lot of money in this stock. the management even announced an 1:1 bonus issue! An expert commented at that time that even unknown companies issue bonus shares and unwary investors get trapped in such companies. He referred to this company in his article. I disregarded his opinion and averaged my investment; the company was supposed to be in diamond trading and jewellery manufacturing. At one time I held 3100 shares at an average cost of rs. 16 per share. Later I got wiser and sold 1600 shares in small lots, at a heavy loss of course! Now the company has been suspended from trading by BSE and I am holding 1500 dead shares. I invested in this after reading Warren Buffet's book! .

Now that the company is suspended, you can't do anything about the shares.

Everybody makes bad investments, but only those who learn from their mistakes succeed in the long-term.

1. Don't invest in companies that are not listed on the NSE.

NSE has stringent listing requirements.

Compared to NSE, BSE's listing requirements are lenient.

Thus even junk companies are easily able to list on the BSE.

NSE is the preferred stock exchange as it is more liquid and more professional. If a company is not able to list of the NSE, investors need to be careful about the company.

2. A share bonus means nothing. It is just an accounting entry. Ignore bonus announcements.

3. If making money was as easy as reading a book and following the instructions, every literate person would have been a millionaire by now.

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Agree in general to the rest of the post, but not to this comment.

There are gems which are listed only in BSE.

Examples: Hawkins Cooker, Mayur Uniquoters

It's all about analyzing companies, their business and future profitability. A bonus or a split here and there or a special dividend should not be the reason to buy a stock.

When you are buying a stock, you are part owner of a business. Think of how much would one research before buying a house. Most people think of shares as options to make a quick buck, but it doesn't work that way.

Read : One Up on Wall Street by Peter Lynch. This book changed my whole investing mindset.

Of course, there are a few exceptions.

There are many BSE-only MNCs too.

If you randomly choose a company that is listed only on the BSE, there is a very high probability that it's not worth investing or there isn't enough information available about the company to make an investment decision.

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