Shareholders

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25 September 2011 what points are to be considered by a shareholder before investing in a company?

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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25 September 2011 You can safely invest your money and also increase the amount of returns by following the tips mentioned here.

1).Investment Time Frame

The time frame of your investment is very much important as few companies are expected to give good returns within a short time period and few are expected to pay you huge money in the long term. So you should determine the time frame of your investment very carefully and then invest your money accordingly.

2).Accepting The Risk Factor

You should accept the truth that every investment will have a risk factor. Each and every investor has to have a risk. What if a company incurs heavy losses immediately after you invest in that company? So you should try to minimize the risk element in your investment by doing a good homework.

3).Observe The Markets Carefully

You should observe the market movements very precisely and keep yourself up to date to gain the maximum profits form your investment. Even though there exists perfect conditions for a company's growth, the stock market tends to be little volatile. So you should be very careful before you invest as well as after investing also.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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25 September 2011 4).Global Economical and Political Condition

Global economical and political conditions will affect a company's profits and also the existence of the company will be dependent on these conditions. SO before investing your money, try to have knowledge on current affairs and try to figure out the company which may give you good returns as per the current global economic and political conditions.

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