Friday, 4 November 2011

The stock market (1)

The stock market or investing in the stock market is one of my favorite topics for my business classes. But be aware, my approach is purely theoretical so I cannot advise what companies to invest in, especially during these periods of extreme volatility.
A few tips:
If you are an investor you probably have some information. Before investing in a particular company check the evolution of stock over the last year, at least ( it is advisable to check it over the last two years ). If there are many fluctuations in time, many ups and downs, it is not wise to invest.
You can find information about the evolution of a company’s stock on the Bucharest Stock exchange site. You can also find dependable information in financial newspapers.
You should find information about the income statement of the company. Check the evolution of profits in time, during at least one year before. If the company has profits but they decrease in time it is not good, because this is a sign of bad management or other internal problems that can affect its evolution in the future.

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