Read the Corporate Prospectus

  

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 use low- cost mutual funds that invest in securities indexes.

                       

In the event that they do read a prospectus--few are able to understand what’s inside.

                       

In that case, they ought to try to review the first part of the 10-K. The latter provides a review of what the company does or makes,and where. It also goes into a discussion of customers and competitors.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)