Here's what you should do when you hear a rumour on a stock

CNBC-TV18 and National Stock Exchange (NSE) have come together to promote investor awareness through a special campaign hashtag called Informed Investor, that empowers you to make the right decisions with your money.

As part of this special segment, CNBC-TV18's Anuj Singhal will take us through what should you do when you hear a rumour on a stock.

If you are investing in rumour, and rumour can be anything, positive or negative and if you are trading on that, it is basically gambling. It is not an investment. What it does is, it leads to a price discovery which in the near term may look according to what you want, but in the medium term, it will revert back to the mean. That is why it leads to unstable price discovery.