When you buy stock of a company, you buy company’s ownership whether it is a small quantity or a big one. You invest your hard-earned money to get return. So it is very basic thing to research about the company in which you will invest your money. Being the owner of company you must know about the company, its working and its stakeholders. There are some important points which you must know about company before investing.
What does Company do
You can search about company’s official website to know about the company, value statements, customer and investor’s policy, history, products and services. Try to get as much information from website which will help you to give a basic view of company.
Raw material supplier
If this is manufacturing company, you must know about the suppliers of raw material to company. You must know about the latest developments of suppliers and its effect on your company and industry.
Stakeholders and related parties
Before investing in a company you should know about the promoters of the company, their ownership details, qualifications, experience, there statements related to future prospects of company. Also you can find transaction related to insider trading by promoter at Stock exchange portal. You should also know about other business affiliates, shareholders and fully or partially owned subsidiaries.
Most of the company provide their financial results and other related news on its website itself. While analyzing company’s website you can check company’s financial results, balance sheets, shareholding patterns etc also. You can also check current and past results, shareholding patterns and other related announcements from website of Stock exchanges. By comparing the results you can take your investment decisions.
Know the Competitors
This is the most important point to be keenly watched. Always keep a close watch on the competitors. It will help you to evaluate about the whole industry. Being a small investor you can not affect the working of your company. But you can take a decision to keep or exit your holding.
Always keep yourself updated about the developments in the industry, news related to your company, stakeholders, suppliers, financial and other news which can affect company’s progress.