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
Differences between Equity Finance and Preference Dissimilarity between Equity Finance and Preference are as follows:   Ordinary share capital

A firm has the following accounts: What is the net income for the period? Net patient revenue = $1,500,000 Supply expense = $200,000 Depreciation expense = $100,000 Salaries and b

Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy. The firm''s annual sales are $500,000; its f

Commercial Bank for Short Term Loans Purpose Why Commercial Banks Prefer To Lend Short Term Loans a) Long-term forecasts are not only difficult although also vague as unc

Price - Sales of Goods Like where section 10 provides such the price for goods may like fixed by like: (i) Contract; and one is (ii) The manner provided within the contr

1) Calculate the yield to maturity of a 7-year $1,000 par value bond with an annual coupon rate of 7.5% and a current price of $1,125. Provide the spreadsheet solutions for both an

What is the role of a broker in security transactions? How are brokers compensated? Ans: Brokers handle orders to sell or buy securities. Brokers are agents who work in place o

Explain the both Dividend Yield and Earnings Yield Dividend Yield: Dividend yield is the ratio of per share expected dividends, to current market price of share. Earnin

Term Structure of Interest Rates The term structure of interest rate give details the relationship between the term to maturity and interest rates and the differences between