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what to know before you invest

Posted on 24. Feb, 2010 by racine in penny pinchin'

Deciding what stock to purchase can be tricky business.  Most people would rather close their eyes and simply pick something than go into deep research.    I recently found this great article while looking up some information for my investment club titled “Ten Questions Every Investor Should Ask Before Buying a Stock.”  This Fortune article was featured on CNNMoney.com and it lists some relatively easy to answer questions any person considering purchasing a stock should ask themselves.  Hey, if you are going to invest your hard earned money, you should at least do a little homework and feel comfortable with your investment. 

My favorite two pieces of advice in the article are to: 1) understand how the company is doing in comparison to  competitors and 2) know how the broader economy affects things.  So penny pinchers, make sure you do your homework before you invest!

Tags: how to invest in stocks, what to look for when investing