What investor should ask before buying a stock


According to the December 22, 2003 issue of Forbes, following are the 10 questions every investor should ask before buying a stock:

1. How does the company make money?

2. Are sales real?

3. How is the company doing relative to its competitors?

4. How does the broader economy affect things?

5. What could really hurt - or even kill - the company over the next few years?

6. Is management sweeping expenses under the carpet?

7. Is the company living within its means?

8. Who is running the show?

9. What is the company really worth?

10. Do I really need to own this stock?

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Finance Basics: What investor should ask before buying a stock
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