Question

Concisely define three facts you believe would be of high interest to a prospective investor

Answer 1

Three facts that the prospective investor would see before investing are as follows

1) Financial performance of the company- company with good financial stability attracts more investors. Investors expect growth if the company is not financially viable then investors cant expect growth from the company.comapny should have enough assets to cover its liabilities and bring future benefits for the company. Investors look for a profit-making company

2) Market size- Investors are attracted to the company having a large market. Investors look for a company with a larger market size means more stable customer and future prospects of the company will be bright which required by the investors. They look for the company which gets profits not from their initial products but also from other products

3) Business plans/ strategise-Investors are very much interested in the strategies that the business houses will adopt what are their upcoming plans, goals, and strategies to achieve them.future planning will tell about the projection of sales, projected profits and what are the strategize to achieve them.which will tell the growth story of the company. business strategies like expansion through mergers, acquisitions also attracts investors as it increases the market size and growth of the company