Online Test Banks
Score higher
See Online Test Banks
Learning anything is easy
Browse Online Courses
Mobile Apps
Learning on the go
Explore Mobile Apps
Dummies Store
Shop for books and more
Start Shopping

Checking Important Company Fundamentals before Investing in a Stock

Part of the Stock Investing For Dummies Cheat Sheet

Before you buy stocks, you have to do a little research on the companies you're thinking of investing in. Pay attention to the following key components when you look at a company's main financial statements (the income statement and the balance sheet):

  • Earnings: This number should be at least 10 percent higher than the year before.

  • Sales: This number should be higher than the year before.

  • Debt: This number should be lower than or about the same as the year before. It should also be lower than the company's assets.

  • Equity: This number should be higher than the year before.

blog comments powered by Disqus

Inside Sweepstakes

Win $500. Easy.