When you decide to try your hand at stock picking, your goal is to find a business that has strong fundamentals
especially if you plan to hold on to an asset for a while
But before you put faith in a company, you should thoroughly research
Here are seven things you should know about a publicly traded company before investing your hard-earned cash.
1. Long-term strength and stability.
The stock market by its very nature – day by day and year by year – is volatile. At some point, a company is going to lose value in the market.
But what matters is long-term sustainability. In general, trend lines should be smooth and high.
a stable company exhibits some or all of these characteristics
it maximizes returns, maintains low to moderate credit levels, maintains competitiveness in its industry, and has competent leadership
2. Price-earnings ratio as an indicator of valuation. to learn in detail click below