Shares/Stock Keys to identifying a good stock

[Setho]

As we all have been able to see that Warren buffett is the world's greatest investor . He has been able to do this and flip tens of thousands of Dollars to millions of Dollars within his lifetime and he usually does this without taking any decision but instead investing in companies that are upcoming and he thinks that they are going to be performing well in the future .

1. The business structure . The company's structure is one very important parameter to consider . If the CEO is somebody that is very experienced and the governing body is set up in such a way that is going to be minimal conflict are understandable means of sharing power then you can bet that it is going to be stable .

2. Type of product or service they sell . The type of product or service that they are offering is one of the most important things to consider . If they are selling everyday products like breaverages of food items, then that might be a good indication .

3. Longevity. Also going to analyse how long you think that business is going to stay in the market in the face of competition and unfavorable government policies.

 

[Jasz]

The stock market can be an intimidating place for people who don't know how it works. But if you're looking to invest, the key is to do your research and get educated about what makes a good stock. Here are some things you should look for.

- Dividends: Dividends are a payout made to shareholders based on the company's profits. This means that a company that pays dividends is profitable and potentially has room for growth.

- Market capitalization: Market capitalization is essentially the value of the company, based on its number of shares multiplied by its share price. Companies with a larger cap have more liquidity, which means they're more likely to be successful in the long run because they have more capital available.

- Price-to-earnings ratio: The P/E ratio shows how much investors are willing to pay per dollar of earnings. It's calculated by dividing the share price of the business by its earnings per share (EPS). A higher P/E ratio typically indicates confidence in future earnings and profitability, so it's generally a good sign if you see one of these on a stock! A lower P/E ratio may indicate that investors are not as confident in future earnings or profitability—and therefore could be risky investments.

 

[Mika]

The stock market is a highly manipulated market. A lot of insider trading goes on in the stock market. In most cases, only the big investors and the companies make money, whereas small investors lose their money. If you want to invest in the stock market you need to be very watchful about what stocks you are buying, how long you are holding your stocks, and whether the stocks are giving good dividends or not. Enron was once one of the biggest companies in the world, however, the stock prices were so much manipulated that the company crashed. Enron was not making enough money from its investment, yet the stock price of Enron continued to move up because the company continuously promoted itself as one of the best money-making machines of the time, then one day the glass ceiling shattered. Now, Enrol is listed as one of the biggest frauds in American history. Recently, the CEO of the stock exchange in my home country has been fired for insider trading, he has been found guilty to sell information to big investors. If you look into the stock exchange in your own country, you will see enough fraudulent activities going around in the stock market.

 

[Jasmine]

You should always check market performance of the business before buying its share. You should also check the business structure. Let me explain what market performance and business structure actually refer to. The stock price moves up and down according to the buying and selling activities, if a lot of people are buying the stocks, the price starts going up and if a lot of people are selling, the price starts going down. As far s buying and selling activities are considered, people start buying when they suspect that the company is going to profit soon, and start selling when they suspect that the company will lose the market. The price also corresponds with the company's business performance, if the business is performing well, the value of stocks starts going up. When you are buying stocks you need to check whether the company is profiting or not. Another thing you need to consider is business structure. Do you know why Tesla stocks are rapidly going up? Well, that's because Tesla makes electric cars and a lot of people care about not wasting fossil fuel. That's why Tesla is selling more cars, and is making more money, resulting in the growth of stock price.