Now Reading: Three-quarters of all listed stocks are now zombie stocks
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Three-quarters of all listed stocks are now zombie stocks
Nearly 75% of all stocks ever listed on Indian exchanges no longer trade, Business Today reports, citing columnist Devina Mehra. While about 4,500 stocks are actively traded today, the total ever listed…
The Story in Brief
Nearly 75% of all stocks ever listed on Indian exchanges no longer trade, Business Today reports, citing columnist Devina Mehra. While about 4,500 stocks are actively traded today, the total ever listed is several times higher, raising the risk that old demat accounts contain forgotten 'zombie stocks' that are illiquid, delisted, or effectively dead.
Mehra advises investors to download their full DP statement and review every holding. Key warning signs include stocks with negligible liquidity, delisted shares, and holdings held only because the investor wants to recover the original purchase price. She recommends a simple test: would you buy the stock at today’s price if you had cash?
The Indian Opinion
The 'zombie stocks' story feeds a lazy narrative that all old holdings are useless and that active trading is always superior. But many legacy stocks pay steady dividends or sit in companies that have simply fallen out of analyst coverage. The real test is not age or liquidity but whether the capital earns better risk-adjusted returns elsewhere. A rational investor should ask: what is the opportunity cost of not selling?
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
