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A cautionary investing tale
What do GameStop and Australian mining stock have in common?
They’re both listed as ‘GME’.
GameStop is listed as GME on the New York Stock Exchange. GME Resources Limited is listed as GME on the Australian Securities Exchange.
Investors recently mistook GME Resources for the popular GameStop, which caused an unexpected surge in the small mining company’s trading volume. Intriguing news for the mining company, but bad news for the traders who just invested capital in the wrong company!
It can be easier than you’d think to purchase the wrong stock by mistake, so it’s a good idea to research thoroughly ahead of any purchase.
- Know your stock exchanges
Signal Advance saw an unexpected flurry of activity when investors mistook it for a messaging app ‘Signal’ promoted by Elon Musk (which wasn’t listed on the stock exchange at all!)
- Know your tickers
A slip of the finger could result in a purchase of TLSA (Tiziana Life Sciences) instead of TSLA (Tesla). It’s important to check carefully and ensure the correct company name matches up with the ticker
Investing involves financial risk, and there’s a chance you could lose your capital, which may have serious financial consequences.
With that in mind, it seems particularly important to avoid investing mistakes like investing in the wrong company from the get-go! Read more here.