Buying shares of a company, Finance Basics

Buying Shares of a Company

Factors should be refer when Buying Shares of a Company

1. Economic situation of the country and other non-economic factors as like unfavorable climatic situation and diseases that may lead to low productivity and poor earnings.

2. State of the company of management as like are the B.O.D. and key management personnel of repute? They should be believed and run the company successfully and honestly.

3. Behaviour of the product dealt in and its market share as like is the product vulnerable to weather conditions? Is it issue to restrictions?

4. Marketability of the shares - how slowly or fast can the shares of the firm be sold?

5. Diversification that is does the company have a variety of operations as like multi-products so that whether one line of business declines, the other raises and the overall position is gainful.

6. Company's trading partners or local and abroad and its competitors.

7. Prospects of development of the firm due to expected development in demand of products of the firm.

Posted Date: 2/1/2013 1:09:12 AM | Location : United States







Related Discussions:- Buying shares of a company, Assignment Help, Ask Question on Buying shares of a company, Get Answer, Expert's Help, Buying shares of a company Discussions

Write discussion on Buying shares of a company
Your posts are moderated
Related Questions
Advantages of Overdraft Finance 1. It is useful in financial crisis such an accountant cannot forecast because of abrupt fall in profits so liquidity problems. 2. In

Preparing Contract Note in the Stock Exchange Clerk takes the details of the day's transaction to the broker at the end of working day. Broker scrutinizes all transactions o

Debt Finance in US of Small Companies Why It CAN Be Difficult For Small Companies to Raise Debt Finance in US Lack of safety avoidances of finances available

Ask lajgkjasbgksabgbaskjbaskjbasjgbhjabgjbjgbskjgbkasbgjkabksgbksbgkabkhvakkvbaoygfyabkbkkye#Minimum 100 words accepted#

Computation of Payback Period Method 1. Under uniform annual incremental cash inflows - if the venture or an asset generates uniform cash inflows then the payback period (PB

Marbela Corporation's stock had a required return of 12.75% last year, when the risk-free rate was 6.4% and the market risk premium was 5.5%.  Now suppose the market risk premium d

Parties include In Central Depository System 1. Government As like for the motive of attracting foreign supporting and investors the infrastructure of capital markets.

Stock Repurchase The company can buy back also several of its outstanding shares instead of paying cash dividends. This is identified as stock repurchase and or bought back or

A Ltd.'s share gives a return of 20% and B Ltd.'s share gives 32% return. Mr. Gotha invested 25% in A Ltd.'s share and 75% of B Ltd.'s shares. What would be the expected return of

Gloria the Investor Gloria is a seasoned sales manager with a very large international company. Although she has a great deal of experience with sales, she has little experience w