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When I read a company's prospectus, what should I pay attention to?


When I research a company for stock investment purposes, what should I look for in a prospectus?

There are a lot of things you can look into depending on the industry of the company. For stock investment purposes you may want to look at the company's EPS as it indicates the company's profitability. Also its PE ratio or PE multiple or PEG to find out its projected earnings growth. These all mean something only when compared to the ratios of similar companies or the industry though as different industries have different ranges.

You can also look at its market capitalization, cash flows, operating profit/proft margin, ROA, ROI, stock price movements and company news.

HI,

It should show the cash position of the company.
It should show profits every year for at least 7 years or
more. A manufacturing company should allocate a
percentage of its expenditure on research.And lastly
the company should not be in debt if it is run by a good
management .
rgds................

You should always look at the risks, fees, and objectives or goals they are trying to obtain. Look at their 3,5, and 7 year returns on principle. Always look at how much experience (in years) a manager has with the company. All of these things are important.

you shoul read the fee for selling and buying of mutual fund...
see in what stocks they invest your money
how the performance of the company in 3 years ...
see their financial report ...

by
http://www.gunungpring.com/wordpress/inv...

If you cannot answer that question by yourself you should not be buying individual stocks. Please read my profile.

Sales and earnings growth, p/e on a fully diluted basis, growth story, number of shares being sold and who is selling (company or existing shareholders).

Financial Report and the management's discussions

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