What are the factors to take into consideration while investing new shares in a company?

Question

What are the factors to take into consideration while investing new shares in a company?

Answer 1

I would see what the company produces or specializes in and wonder if there is a good need for it... I would see how much they trade per share. I would also see if their is a dividend and see if how the industry is doing...

Answer 2

I would look in the following:

1. The industry the company is in

2. Situation of the industry - growing / stagnant / matured - short term and long term prospects

3. The management of the company - transparency, dividend records, bank loan, assets etc.

4. Current trading prices, historical trading prices, variation of trading prices in various market cycles

5. Opinion other investors have about the company

6. Balance sheet & Profit & loss account statements

7. Any news of big order booking or growth prospects

8. I would like to know also the other companies and their financial status the promoters have

Answer 3

1st and foremost is the fundamentals of the company. What is the face valu of the share and the premium demanded by the company. See the book value of the company and atleast last 3 years balance sheet. What is the  purpose of fund rising by the company. If you want to know more details log on to moneycontrol.com and see the details in IPO...