Points to be taken care of before you invest in any stock
Some of the major factors to be considered are the company's performance, and its promoters before any investment is made in a particular stock.
THE MAJOR points to be taken care of before you invest in any stock are:
2. The financial position for the last 4/5 years. A comparison must be made on the basis of the last three years' annual performance.
3. Profit and Loss Accounts. A comparison must be worked out for the last three years.
4. Sales performance for the last three years.
5. Reserves of the company, how strong the company is, and will it be able to issue bonus shares to the shareholders in the next year or two.
6. When was the last approved rights and bonus issue. This assessment will help you in investing for the long term.
7. Amount of dividend paid for the last three years, will speak of its standing in the stock market.
8. Yield per share.
9. Current Value of the stock.
9. Amount of secured/ unsecured loans and liabilities, and loans raised, etc.
10. Total investments
11. Cash and bank balances
12. Current assets
13. Book value of the share
When we are a bit careful while investing in any stock, the returns are bound to be quite attractive in the long run.
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