Most investors never bother to read a corporate prospectus. That’s one of the reasons why I suggest they don’t buy individual stocks, but that they instead choose low-cost mutual funds that invest in securities indexes.
But in the event that they do decide to invest in an individual security, the least they can do is look at the company’s 10-K report.
One item of importance is the section called Risk Factors. (It comes after the description of the business.) These are often the points that may negatively affect the company's business. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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