Stocks 

10 Questions to ask before buying any stock

By Finance Madness

November 25, 2022

What does the company do?

1

Understanding the business in less than 5 minutes is important

Who runs the company?

2

Perhaps the most important factor is to understand the background of the promoters

Is the company profitable?

3

Check whether the company is making at Operating Level or at Net Profit Level

Does the company have a sustainable advantage?

4

Having a Moat is important for sustained company performance

How strong is the company's Balance Sheet?

5

Healthy Balance Sheet enables a company to grow in future

How is the past 3 years performance of the company?

6

Recent performance should be analysed

Was the company involved in any fraud in the past?

7

Check the filings to determine about any frauds

Who are the competitors of the company?

8

This will tell a great deal about how well the company will do in future.

What is the Debt / Equity ratio of the company?

9

An overly leveraged company can pose a danger to its survival.

What is the valuation of the stock compared to other competitors?

10

This will show whether company is over or under valued