# Dayaratne Gamage 2011-10-31 19:32
Main reasons are govt intervention and Broker's reaction
Govt Intervention
( !)Buying shares To show upward trend for political
reasons
(2)Regulation introduced by CSE to control Brokers
Brokers Reaction
(1)Giving incentives to individuals involved in purchasing
of shares in govt institutions and selling at abnormal
prices
(2) Providing unlimited credit facilities to certain parties
To manipulate the market
(3)Selling shares at low price to react Cse Regulations
Solution
The govt role should be providing facilities for
favorable Business environment and not buying shares
To show artificial
upward trend in the market
Reply