Buy Stocks

Buy Stocks

A stock represents shares of any company. The way the company issuing shares to raise funds , rather than to ensure creditors and interest payments . Stock certificate on behalf of your company's assets and earnings requirements, and to ensure that your right to vote. Although there is a stock that does not mean your day dealing with a company's daily management , but it does give you a voice in the election of the Board of Directors , which should in theory, to protect your interests . Are bought and sold stock exchange . Two of the most important communication on the New York Stock Exchange and NASDAQ .

For many investors, the use of rich experience and expertise , stock brokers are the most effective and efficient way to buy and sell stocks. Stockbrokers monitoring market , identify trends, and execute transactions on behalf of clients . Brokerage companies usually charge their expertise , research and management , on behalf of you and your stock portfolio . When you use a broker, you spend some time with the consultants to discuss your short and long term financial goals and create a portfolio designed to meet these objectives.

Many investors choose to do it yourself. The number of Internet brokers to provide investors with only manage and execute their trading platforms and technologies. Like Google Finance and Yahoo Finance website and professional website provides a wide range of financial research company , their profitability , and their liabilities. Online brokerage site to investors platform, rather than trade expertise to perform . Successful on-line to research the correct combination of equity investors have invested a considerable amount of time .

Before buying stocks , you will want to pay close attention to a number of areas :

• Earnings : Do you want to see progress, if not increased significantly each year.

• Sales : These should also steadily increased year by year

• Debt : Do you want to see the debt reduction each year . Least, the company 's debt should be less than its assets.

• Stock : Then you should get an annual growth of the company's equity .

There are other measures to consider before investing in the stock .

• E: For large-cap stocks , P / E ratio should be 20 years of age. For all other stocks, it should be lower than the registered 40.

• Price sales quotas : price to sales ratio should be close to 1 .

• Return on equity , ROE should be 10% annual growth .

• Earnings Growth: You will want to look a few years continued profitable growth. Earnings growth of 10% or higher is a very powerful company and wellness company.

• asset-liability ratio should be: half of all of the assets of debt .

Explore these areas will provide a potential investor with good company's economic vitality and growth potential of the snapshot. Once you have studied a company, you can decide whether to invest into your long-term and short-term investment plans. Of course , the establishment of a diversified investment portfolio , a good mix of stocks, mutual funds , and cash is the best long-term investment plans, health.