Stocks and Shares (3)

For long-term investors, it is important to select shares based on fundamentals, which means investors need to be knowledgeable about the companies in which they plan to invest their savings.

It is therefore important that you read and understand:

the prospectuses,

financial reports and,

corporate announcements,

which listed companies are required to issue to the shareholders and the investing public.


In selecting shares, you should examine factors such as:


the background of the company and its management,

its financial strength,

price-earning ratio

dividend yield,

its earning growth prospect

and competitive edge.

A wise investor checks out these factors which may affect the price of a stock before putting in his money.