Posted by terence_Say > 2013-10-24 23:08 | Report Abuse

Before you invest, you have to do your own research and analysis. After all, there is no such thing called “free lunch” in the world. I have read an online article about the 10 questions to ask before buying stocks. Here I would like to share my own version: 1. What kind of business is the company doing? 2. Will the company still exist after 10 years? In other words, can you imagine if it will close down in the near future? 3. Is the company making profit now? If not, what is the reason behind? 4. Does the company have potential for future development? What is the plan? 5. As consumer(s), do I or others like to use products or services provided by the company? 6. Is the company competitive enough to have a place now in the industry? 7. Are the P/E ratio, Earnings Per Share (EPS), Net Tangible Assets (NTA), and market value relatively reasonable? 8. Is the company having serious debt problem? How is the cash flow? 9. Do you agree with the company’s vision and management style? 10. What is the company history of paying dividend? What is the dividend policy? After you answered these questions, you already have a basic idea about what you are going to invest in. Even there are many other recommended choices, but you have to do research to see if it the company is really worth your money. Do not ever blindly follow the “market tips”; use your judgment when reading analysis reports. There are tons of them out there. Remember, you are fully responsible for the gain/loss you make in the market. Translated by Mr Wai © LeInvest.com Source: http://www.leinvest.com/en/10-questions-to-ask-before-buying-stocks.html#.Umk14vlmiSo