Where to start
While there are no guarantees that your stock
investment will end up meeting your expectations, the following
information can help you gauge a company's prospects: |
| Rate at which the company's
sales and earnings are growing |
| Competitiveness of its
products or services |
| Availability of new markets |
| Management's strengths
and weaknesses |
| Overall economic environment
in which a company operates |
|
With so many stocks to choose among, it can
be difficult to know where to begin your research. Here are some
ideas:
|
| Investigate your company's
employee stock purchase plan |
| Support your community
by investing in local firms |
| Invest in companies that
provide products and services you know and like |
| Invest in well-known brands |
| If you have expertise in
a particular area, invest in the emerging leaders of that
field |
| Invest in companies that
share your political, religious, or social values |
|
| Wherever you begin, you'll want to make
sure that you don't have too many of your assets concentrated
in the stock of any one company — especially the company
where you work. |
|
