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Q.

A well known Steel Company is allegedly buying iron ore below market price------news. What could be the reason?

Tags: money, company, market price
Asked by Good Citizen, 03 Jul '12 11:03 am
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Answers (5)

1.

Yes, it is doing the rounds in the newsrooms. It can be to revive the company as it has suffered losses due to the steel prices fluctuations!!
Answered by dharamender nebhnani, 03 Jul '12 01:44 pm

 
  
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2.

1) In an ideal situation, there is nothing wrong if anyone buys any product below the market price.
2) However, there arises a question as to who and why someone is selling the iron ore at below the market price.
3) Someone must find an answer to this. Then you understand as to why the above bizarre thing is happening in India.
4) Do not forget that your own Bellary Reddys have been selling iron ore which they never owned. Under such and similar circumstances, anything can happen in Incredible India.
Answered by Tony Fernandez, 03 Jul '12 11:09 pm

 
  
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3.

Below market price purchase if possible only if the seller is willing to sell.In this case there may be some un holly link or underhand deal between the buyer n seller.Besides,as the cost of extraction of iron ore in many cases is much lower than the market price (which is artificial),the buyer might have bought it from the seller at a lower price but documents showing market price.
Answered by Damodar Biswal, 03 Jul '12 05:20 pm

 
  
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4.

Saving money by buying cheaper,. under the influence of mafia or political pressure ; could be any of these reasons
Answered by rajan, 03 Jul '12 11:10 am

 
  
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5.

Involvement of politicians
Answered by LOVE DA, 03 Jul '12 11:04 am

 
  
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