Stock Investing

Written by Jessica Duquette
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You’ve made the decision to invest in the stock market. What do you do next? Well, start researching stock investing advice. There are several factors to keep in mind when shopping around for stock.

Proven Numbers

Before you invest any money at all, be sure to see how a company’s stock numbers have performed in the past. Clearly, you do not want to invest in a company who has not previously done well. Look for exceptional net gains and prices approved by your financial advisor.

Independent Advice

If you are open to stock investing on the advice from anyone other than your financial advisor, be sure to know all the facts. Your advice should only come from people independent of the stock. That is to say, if Uncle Bob works for XYZ company and owns 10,000 shares himself, don’t take his recommendation to invest in his company. He’s obviously got an ulterior motive, and while his stock prices increase with your purchase, you’ll soon find yourself out a lot of money.

Income vs. Growth

When it comes to stock investing, be sure to find out how each company handles earnings. Companies who regularly pay out dividends are considered income investments. This means when a company reports positive earnings, its investors are rewarded by declaring dividends (you receive money for each share that you own.) Younger companies, more often technology firms retain earnings in order to reinvest the money in future technology, research or development. As a result the stock prices usually increase and while you don’t receive frequent dividends, your holdings increase in value.

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