Question

What are the most important information that i need to know before investing in a stock.

Answer 1

Investing in Stock:

The most important thing is to educate yourself interms of the Company in which stock you are investing.

The histrocal financials, operational performance, Key Management, Auditors report of the company need to be studied to have a clear picture on the company's stregths and weaknesses. There shall be many research reports on the companies available; However, a strict self study and research is truly recommended. Also, the future plans of the company need to be thoroughly understood as the same determines the value of the stock in which the investment is made.

If the investment is in a portfolio of stocks, the same strudy need to be done on all the companies.

Risk assesment need to be done interms of companies with higher risk, moderate risk and lower risk. Accordingly, the value of the investment need to be allocated among the stocks in the portfolio.

Regular monitoring on the happenings of the company, Corporate Actions, market price flucutations, news about the company need to be evaluated to continue, increase further in the investment in the stock.

Need to get educated on the many modern portfolio management tools, to cover your investments from the potential risks.