What to Consider When Investing in Stocks
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Chris Johansen
Mar 17, 2013, 11:25:04 AM3/17/13
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Chris Johansen
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Article Title: What to Consider When Investing in Stocks
Author: Chris Johansen
Word Count: 535
Article URL: http://www.isnare.com/?aid=1824494&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=1824494
Easy Publish Tool: http://www.isnare.com/html.php?aid=1824494
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Selecting good stocks requires the investor to consider his or her long and short-term financial goals, research companies and their management practices, and create and implement a strategy to optimize their return on investment. Analysts have a number of theories and practices they use to make decisions on whether a stock is a �buy�, a �sell� or a �hold�. While every analyst and broker takes a different position, they all look at the same financial information and data.
When looking at a company�s main financial statements, which are the income statement and balance sheet, pay close attention to the following areas. They are a good indication of the company�s overall financial health.
� Earnings: You should look at a company�s earnings. Ideally, the number should be ten percent higher than last year. Earnings are a good indicator of a company�s growth and growth potential.
� Sales: Sales should increase every year. If sales fail to increase, you may be looking at company on a downward swing.
� Debt: Companies on solid financial footing should be actively paying down their debt. If earnings and sales are up, debt should be down.
Good stocks are reflective of a company�s overall management strategy as well. There are a number of financial ratios you should explore and consider before purchasing stock and investing. These figures give you an idea about the company�s long term growth and performance.
� Price to Earnings Ratio (P/E)
� Price to Sales Ration (PSR)
� Return on Equity
� Earnings Growth
� Debt to Asset Ratio
All of these facts and figures should be available in the company�s prospectus, annual report and Security and Exchange Commission (SEC) filings. For penny stock and other off market stocks, you will need to do a little extra digging, as the SEC does not hold these companies to the same filing and listing standards as other companies.
Only you (and your broker) can decide what stocks are right for your investment strategy and financial goals. Good stocks will earn you money over time, and can withstand some of the market�s more volatile turns. Companies that provide goods and services people want are usually profitable. Surveying the products in your own home can help you identify some of the companies you may want to invest in. If your family is purchasing these things, there�s a good chance your neighbor is as well.
Diversity is key to picking good stocks. You should chose companies which represent different areas, sectors and industries. While you may be using a broker to manage your portfolio, you should keep yourself informed and up to date on market trends and your own positions ion certain stocks. Staying focused on your long term goals rather than the short term gains and losses will help you withstand the ordinary ups and downs of the market. Good stocks can be found- and purchased � at every price point. Once you have a clear idea of what you want to gain from your transaction, you can easily find the right stock opportunities to suit your needs.
About The Author: Are you looking for more information regarding investing in stocks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=1824494
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Message delivered directly to members of the group:
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*****************************************************************
Please consider this free-reprint article written by:
Chris Johansen
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=1824494
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=1824494
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: What to Consider When Investing in Stocks
Author: Chris Johansen
Word Count: 535
Article URL: http://www.isnare.com/?aid=1824494&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=1824494
Easy Publish Tool: http://www.isnare.com/html.php?aid=1824494
*********************** ARTICLE START ***********************
Selecting good stocks requires the investor to consider his or her long and short-term financial goals, research companies and their management practices, and create and implement a strategy to optimize their return on investment. Analysts have a number of theories and practices they use to make decisions on whether a stock is a �buy�, a �sell� or a �hold�. While every analyst and broker takes a different position, they all look at the same financial information and data.
When looking at a company�s main financial statements, which are the income statement and balance sheet, pay close attention to the following areas. They are a good indication of the company�s overall financial health.
� Earnings: You should look at a company�s earnings. Ideally, the number should be ten percent higher than last year. Earnings are a good indicator of a company�s growth and growth potential.
� Sales: Sales should increase every year. If sales fail to increase, you may be looking at company on a downward swing.
� Debt: Companies on solid financial footing should be actively paying down their debt. If earnings and sales are up, debt should be down.
Good stocks are reflective of a company�s overall management strategy as well. There are a number of financial ratios you should explore and consider before purchasing stock and investing. These figures give you an idea about the company�s long term growth and performance.
� Price to Earnings Ratio (P/E)
� Price to Sales Ration (PSR)
� Return on Equity
� Earnings Growth
� Debt to Asset Ratio
All of these facts and figures should be available in the company�s prospectus, annual report and Security and Exchange Commission (SEC) filings. For penny stock and other off market stocks, you will need to do a little extra digging, as the SEC does not hold these companies to the same filing and listing standards as other companies.
Only you (and your broker) can decide what stocks are right for your investment strategy and financial goals. Good stocks will earn you money over time, and can withstand some of the market�s more volatile turns. Companies that provide goods and services people want are usually profitable. Surveying the products in your own home can help you identify some of the companies you may want to invest in. If your family is purchasing these things, there�s a good chance your neighbor is as well.
Diversity is key to picking good stocks. You should chose companies which represent different areas, sectors and industries. While you may be using a broker to manage your portfolio, you should keep yourself informed and up to date on market trends and your own positions ion certain stocks. Staying focused on your long term goals rather than the short term gains and losses will help you withstand the ordinary ups and downs of the market. Good stocks can be found- and purchased � at every price point. Once you have a clear idea of what you want to gain from your transaction, you can easily find the right stock opportunities to suit your needs.
About The Author: Are you looking for more information regarding investing in stocks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=1824494
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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