Holicent
VIP Contributor
When you buy stock, other people's money is on the line. That means you need to take extra precautions to ensure that your investment is treated with respect, and that you are fairly compensated for your investment. Here are some tips on how to protect yourself when buying stock:
1. Do not make any decisions about a company without first reading the annual report and learning about the company's financials.
2. Do not make any decisions about a company without having done your due diligence—that means reading through all of the 10-Ks (annual reports) and 15-F filings (dividend information), as well as any other documents that will be filed with the SEC (Securities and Exchange Commission).
3. Do not make any decisions about a company unless you have spoken with someone at that company who can answer your questions honestly and in detail—and if possible, ask more than one person.
4. Be wary of companies that seem too good to be true—if a stock looks too cheap or too expensive, it probably is.
1. Do not make any decisions about a company without first reading the annual report and learning about the company's financials.
2. Do not make any decisions about a company without having done your due diligence—that means reading through all of the 10-Ks (annual reports) and 15-F filings (dividend information), as well as any other documents that will be filed with the SEC (Securities and Exchange Commission).
3. Do not make any decisions about a company unless you have spoken with someone at that company who can answer your questions honestly and in detail—and if possible, ask more than one person.
4. Be wary of companies that seem too good to be true—if a stock looks too cheap or too expensive, it probably is.