What Is An Income Statement? The income statement is an essential financial report that will inform the investor of a company’s revenues and expenses. This financial statement, is one of the three primary statements that should be studied before purchasing stock in a company. (The other two statements are the balance sheet and the statement…
There are huge benefits to researching your stocks before you make a purchase! Do not invest in a company’s stock without taking the required time to do the necessary research! This is a sure way to lose money. You have to do an “adequate” analysis of the company you are interested in to invest successfully. …
Studying the balance sheet of the company you choose is an important part of fundamental analysis. The balance sheet is one of the three main financial statements used to check out a business. (The other two statements are the Income Statement and the Statement of Cash Flows). An investor needs to analyze the Balance Sheet…
How important is it for an investor to study a company’s competitors before purchasing its’ stock? Very important! Researching and comparing the company’s competitors can inform the investor of the “better” buy. Does the company you are interested in have a competitive advantage? As Warren Buffett states: “A company that has a competitive advantage is likely…
Fundamental analysis is the most popular and “widely” used tool investors use to research their stocks. This type of analysis consists of studying the company’s fundamentals (statistics), financial statements, quarterly and annual reports, and its’ management. Perform Fundamental Analysis Before Purchasing Your Stock: An investor should educate themselves on the company’s fundamentals (statistics) before buying stock…
I will now address “additional” fundamental statistics that need to be studied before purchasing a company’s stock. Keep in mind that a company’s statistics are extremely important when evaluating which company to buy stock in! Remember these statistics will be conveniently provided for you on financial websites such as Yahoo Finance or Google Finance. What Is The…
Another way to research the stock market, in addition to fundamental analysis, is by using technical analysis. This type of analysis consists of using charts to evaluate a stock’s strengths or weaknesses. The technical analyst must be able to make and interpret these charts. Using these charts, the analyst will try to predict the best…
