Monday, July 04, 2016

Things to do before you invest in a stock

Things to do before you invest in a stock

1) Check Net Profit: Compare Annual Net Profit of company for current year and last year.

2) Check EPS: EPS of a stock tells you the capacity of earning of a stock, so the more EPS makes the stock capable to rise.

3) Check Traded Volume: Investors buy and sell stocks on daily basis. The higher volume of a stock confirms interest of large investors.

4) Check Reserve Capital: Good companies always maintain increasing large Reserve Capital.

5) Check  Growth of Stock Price: It is impossible for any stock to rise on daily basis however good company it may be. Price of any stock rises and falls based on demand and supply of money in the market. Over a period of time the growth can be seen in the price of stock of good companies.