High finance can be a throat business but somehow now-famous audio clip of a conversation between a salesman and a client-rich banks still surprising.
That story sounds quite strange in a way – a high-profile executive fintech been harassing and threatening a bank employee because the bank does not give him a temporary loan to speculate on Nykaa IPO.
Not only that, the threat is one encounter killings by the police.
For decades, I have heard many stories related to the IPO crazy but this is without a doubt the most insane.
I wonder what would happen if the IPO is meant is Paytm and the loan was given.
Even if the banks really have the habit of giving such loans, one must take one’s Paytm IPO and now threatens some banks because they do not reject the loan.
Or maybe, it’s the truth …
Anyway, there is no point in speculating.
While Sordid details of this conversation definitely provide entertainment to the public, the bigger issue is debasemen total of any investment process.
One could say that anyone is free to invest in whatever is legal.
There IPO and investors who wish to bid and then sell on the listing and there are those who are in the business of lending.
If all this exists then it will be combined with the most obvious way, regardless of whether it is a reasonable way to invest or indeed to make loans.
If it can be done, then people will do it.
However, it is also true that people tend to do whatever is most readily available and whatever is implicit encouraged to do.
By chance, I recently read this article detailing some studies that indicate the availability of the course, even without a trigger to encourage the behavior.
These studies (can be unpredictable, as in America) about food and exercise.
One found that people who live within a short distance gym use much more often than those who lived further away, even when the difference is only one or two miles.
Even small differences in the availability of changing behavior.
Another study, which appears to be an intervention study, it was found that adding vegetable stand outside the school and in the community means that residents of the area to eat more vegetables relative to junk food, even if nothing else is done to encourage people to change their eating habits , , Or even to promote vegetable stall in any way.
What this implies is clear: If you want people to behave differently, then it means changing circumstances, and change the options available.
Many decisions are not considered explicitly and some sort of automatic response.
When that happens, we live in an information environment that is stacked against savings, investments against, and against investing wisely.
Just look at all the input information you get – TV, internet, newspapers, markets, malls, and even conversations.
How much of it is about spending the money and how much of the savings, or at least not spend.
Try and do the actual survey and you will be amazed at the ratio.
In addition, if you are indeed a saver and investor, you will most likely be guided to the type of investment that is more speculative, high speed.
As we can understand very well, the availability guide the choice.
Not everyone, because many people are good enough to oppose this neighborhood, but a large amount.
Let’s go back to the IPO Punting types which can be inferred from the now-famous phone conversation this.
While the actual death threats or anything just a reflection on the individuals involved, the entire IPO investment environment – and all stock investments – is a bigger problem, much more important.
That is something that might be heading in the wrong direction.
The author is the founder and CEO of Value Research