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Showing posts with the label #stockprice

Simple Rules For Successful Investing

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Never Borrow to Invest If you are planning to start investing in the stock market, first get rid of your previous debts. Moreover, you should only invest that amount which is surplus. Diversify Your Portfolio! If your investment is diversified (five or more stocks), then the chances of a single stock hurting your entire portfolio is reduced. Invest Consistently If you want to build wealth from the market, you need to invest consistently. You also need to increase your investment amount continuously. Avoid Herd Mentality Try to avoid getting influenced by other investors. Understand and follow your strategy. Think Long-Term Most of the stocks take at least 2-3 years time frame to give good returns to their shareholders. Don't  Get Emotional Many investors have been losing money in stock market due to their inability to control emotions, particularly fear, anger and greed. 

Due Diligence - basics

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Due Diligence - basics  Due diligence is defined as investigation or audit that reasonable business and person undertakes before potential investment or before entering an agreement to confirm all facts. Most investor are doing research before buying a security but due diligence can be done by a seller who investigates buyer's capability to complete the purchase. After the Securities Act of 1933 due diligence become common practice in United States when brokers and dealers became responsible for disclosing all relevant information about securities they were selling or they will otherwise be accountable and liable for prosecution. This put brokers into sensitive position where they could be unfairly prosecuted. In response creators of the Act set rule that says if broker performed due diligence when investigating companies whose securities they are going to sell and disclose that information to the public they are not held accountable. Not only prospective investo...