Purchasing stocks is a good way for you and your partner to begin investing at a young age. While the possibility of a large return is always on the horizon, it is important to understand how the stock market works as well as know the specifics of each company your are investing in. This knowledge will give you the ability to navigate the up and down world of the stock market without leaving you worse for the wear. To research and study up on specific companies and types of stocks, there are several resources available for you to find the right information for you and your stocks.
Search online for information regarding your stocks without leaving your home or while you are on the go. The beauty of the Internet is that there is plenty of information at your fingertips that can help you in your drive towards a successful portfolio. But, be wary of where you receive that information. While there are a handful of sites that give accurate up to the minute information, there are others that will have misleading information. Some recommended sites include Yahoo! Finance and Bloomberg, both of which provide the information you may need to invest in stocks. Another excellent site is Morningstar, but there is a small fee to take advantage of all the website has to offer.
Look into the financial reports of the companies that you are purchasing stocks in. Shareholders are usually given an annual financial report. This should be read and studied instead of being tossed away with the rest of your junk mail. Another place to look at how healthy your company is through the Securities and Exchange Commission (SEC). Their website gives detailed analysis on larger companies, focusing on a variety of trends and monetary changes. Smaller companies may be more difficult to find through the SEC, so be sure to look at the company’s website to see if any information is available. The investor section should give the proper knowledge needed for your investment purposes.
Contact your state’s secretary of commerce office to see if the company you are investing in is in good standing with the state. Other information regarding public filings, bankruptcies or any type of information in the public record will be available as well.
Ask your financial advisor for help when determining your next move in the stock market. Be sure it is someone you trust and who have you done a background check on. While there is plenty of information on the Internet and through the means mentioned above, sometimes information falls through the cracks that only an expert can help you with.
Travis Ames has written for numerous publications since 2007 and has been writing instructional articles online since 2010. His areas of expertise are wide and include travel, politics, arts and entertainment, technology and finance. He currently lives in Portland, Oregon where he will begin teaching in the fall of 2011.