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

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