10 thing you should consider when investment in share market
5 stock market investment idea
what is the point should you consider when buying stock?
This will help you, what strategy should you use when buying a stock. Because it will help your attention on specific stock and also proper invest related idea.
- To check sector of the company, which sector will be a boost in the coming year you first identified that sector like auto sector, bank sector, FMCG sector, Finance sector
- Find out the profitability of any company by examining its annual and half-yearly report( this report you can find money control, NSE, BSE). It the most important things to do when examining the report. 1. Net income of the company 2. EPS- Earning per share of the company.
- To examine the previous earning history of the company
- Check whether the company has steady growth
- Scrutiny the companies balance sheet Following parameters are considered
- debt of the company
- liquidity level of the company
- the inventory level of the company
- yearly earning of the company (year to year)
- Return on Assets (ROA)
- Return on Equity (ROE)
- Research and development of any company
- Net margin of the company
- Scrutiny of competition
- compare which company with its rival in the same industry
- Identify which company has the biggest market share
- Identify which company will dominate the high market in future
- Scrutiny leader and management system of the company
- Research about the company’s lead, management team, background data of the leader like in which company he worked for, find out the current position of the leader and management.
- Find out the characteristics that point out a stable and well-reputed leadership
- Recommended reading of the company’s 10-K and 10-Q Annual Reports
- In this report carry information that is more detailed and convenient than the information found in the company’s annual reports
- To identify which are risk factors associated with the company
- To check out whether the company’s position, is it sustainable for the market or not?
Investment in stock markets is more famous because it delivers a high return than other investment plans. However, If you are want to invest in the stock market so you require attention for every stock which is on the basket.