What is the Full Form of ASM in The Share Market?

The ASM Full Form in Share Market is Additional Surveillance Measure. Basically, it’s a set of rules put in place by the stock exchanges, following the lead of the Securities and Exchange Board of India (SEBI). The goal? To keep a close eye on and manage how certain stocks are traded, especially those that are acting a bit unusual or have unpredictable price changes. The idea behind ASM is to make sure the market plays fair, reduce risks, and look out for the investors by keeping an eye on stocks that might be easy targets for price tricks or speculative moves.

Significance of ASM in the Stock Market

ASM is like the market’s lookout, ensuring everything stays stable and investors feel safe. It zeroes in on stocks that might be getting a bit too wild, showing signs they could be played with or speculated on too much. By stepping in early, ASM helps avoid drastic price swings, calms down over-the-top trading, and keeps the market in order.

Impact on Traders and Investors

For both the folks buying and selling in the short term, and those looking to invest for the long haul, ASM shakes things up a bit. Traders, who are all about quick buys and sells, might find themselves paying more to trade and struggling to buy or sell as easily as before. Meanwhile, long-term investors are getting a heads-up: take a closer look and think twice before diving into stocks under ASM’s watch. But, even with these checks in place, things like dividends and stock splits still go on as usual for companies under ASM.