नकली Jhunjhunwala, गलत Signal, Gamestonk | Top 5 Stock Market Fails in the world | - YouTube

Hey, Rakesh Jhunjhunwala has bought a stock!

Which stock? Which stock? Surana Solar

Surana Solar! Surana Solar! Yayy!! We’ve bought it

You shouldn’t have bought it, this was some other Rakesh Jhunjhunwala! -----fighting music ----

Namaskar, I Prasad welcome you to today’s video in which we will talk about 5 stock market fails in the world, which is very shocking and you might laugh at them, so let’s start the video. And, let’s start with number 5.

In January 2021, Elon Musk tweeted that Use Signal. He meant that instead of using WhatsApp use Signal its rival company, in which there is no fear of privacy.

But some people got the wrong signal here. They thought that Signal Application is running by Signal Advance company, and then they started buying shares of Signal Advance, due to which signal advance shares went from $7 to $30.

Company’s management was also shocked that how did share price increased suddenly? They knew that their business was not growing, then how did share price increase that much?

They later got to know that due to Elon Musk’s tweet people got confused and made a mistake of buying shares of this company. By learning this mistake, people started selling their shares and currently its share price has gone below $7.

People who made this mistake are facing losses. So this was the 1st case in which we got to learn that one should invest only after checking the company’s financial statements and other things

Now let’s talk about case number 4.

In the year 2007, Reliance Power stated that they are bringing their IPO. At that time, the stock market was not only booming in India but also in the US and global market

Everyone was investing in the stock market and share prices were also increasing. At the same time in FY2007-2008, the company declared its IPO. Reliance name was very strong at that time, so people preferred to invest in it.

Company’s IPO was subscribed by 72 times, this means the demand for this IPO was a lot. But when the IPO came at that time recession came

Global markets were declining due to the mortgage crisis and during this time company’s listing was done on 11th Feb 2008. In the starting, the share price increased.

For retail investors, the issue price was 430 and at the time of listing, the company share price increased to 538, it was increased by 19%, but suddenly the share price started to decrease to 372.50 and later went on 355rs.

Later, the company’s share price closed at 372.50rs. After this, the company never touched that level of the share price. This stock market boom advantage was taken by Reliance Power

Through IPO, they raised 11563 crores. But people couldn’t understand all these things. Whenever there is a bubble in the market, every company share price starts to increase.

But as soon as this bubble bursts, company share price starts to decrease, and thus weak companies never make up above. One example of this was Reliance Power that never reached that IPO’s level.

The condition of Reliance Power was not that well but taking advantage of this bubble, company at a very high valuation brought its IPO, but investors were stuck in this.

If you would have invested Rs. 10,000 in that IPO then the value of that 10,000, today would have been 71rs. You can now understand how much loss investors faced here.

Here the learning is that take your decision after checking all the fundamentals of the company. Now let’s talk about the 3rd case!

This case is about Zoom. We know that during pandemic we all have used Zoom a lot for video calling or video conferencing. We took our Live classes through Zoom webinar. 23 00:03:52,000 --> 00:03:48,000 As everyone is using Zoom and because of that the share price of zoom started increasing, but in the U.S there 2 companies with the same name, Zoom.

One was Zoom Technologies and the other was Zoom Video Communication.

The company which provides you with video conferencing is Zoom Video Communication, but by mistake people started buying Zoom technologies shares.

Many people made this mistake, and many shares of Zoom technologies were bought, in which its share price increased from $2 to $20.

Till when people realised this mistake many people were already in this pitfall, but then people started selling them and its share price decreased to $1 and below.

So here also, investors faced loss due to their mistakes. Now let’s talk about the stock market fail number 2.

This case is of Gamestonk. Gamestonk is a company whose shares were short by many hedge fund companies, out of which one was Melvin Capital.

But many people got to know that some hedge funds are quite heavily shorting the funds. Many times it is seen that when hedge funds short share, retail investors face a loss.

Here many retail investors planned to take revenge and they started buying the shares of the company. Whenever someone short shares, the more the share price falls the more advantage they get but if the share price increases then it is a disadvantage for them.

Here, many retail investors started purchasing shares of Gamestonk for revenge. Many retail investors started buying shares of Gamestonk and due to this, the share price of the company started increasing.

And soon it increased to $20 to $300. Many hedge funds faced a lot of loss in this. Melvin Capital faced 32000 crore loss. You can imagine how big loss was this.

Now let’s talk about stock market fail number 1 which is quite amazing and dangerous. So let’s talk about it.

This case is of 2015. That year in many news channels and newspapers mentioned that Mr Rakesh Jhunjhunwala has bought the shares of Surana Solar. After this many people started to buy these shares.

Whenever Mr Rakesh Jhunjhunwala buys any companies shares, its share prices start to increase as many people start to buy that particular share. And this is what happened with Surana Solar.

But here a very unique thing happened which will shock you all.

One reporter researched on this and got to know that these shares which have been bought are not bought by the real Rakesh Jhunjhunwala, but some fake Rakesh Jhunjhunwala has bought it.

And once the share price started to fall it didnt stop. People who invested based on this news were facing losses.

So never invest in any company until and unless you do its analysis and also do not buy any stock just on the basis that the other person has bought it, as this is a wrong strategy.

So it is crucial to do analysis and after that only invest in a company. These were the 5 stock market fails.

We hope you liked a lot from this video and if you want to know more about fails, let us know in the comments section below and we’ll plan to make a video on more fails.

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