In Bull Market…there are many ways for promoters to be rich ! One of my broker friend was giving one example. company A was not very well known in market and share price was at at low PE. Now company A do a deal with very well known investor(s) and issue shares with discount. The well known investors name flags in all social medias with its holding in company A along with rosy story created by good content creators. Share price rises…promoters issue more equity…acquired anther dump company by issuing equity…and cyclone go on and on. Retail normally catches train late and have stamped to board the train at any price…this goes on till market tide turn and promoters cashing out money at the maximum !! at the end investors and promoters known well in advance when to exit and but retail investors remain trapped in hopes keep losing money and become poorer !
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