Pivotal Shares

Pivotal Shares Although all shares are exposed to SYSTEMATICS RISKS, the effects of such risk on pivotal shares greatly influence the stock market. Shares of some blue chip companies act as a pivot on which the market is balanced; if they turn bearish the market follows; if they turn bullish, the market looks up. Shares of TISCO, TELCO, ACC, ITC, Hind Lever, etc., belong to this class. If, however, any of these is affected by unsystematic risk, such as a labour strike or price control or decontrol, the share’s rise or fall is not going to affect the market.

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