Account Info
Log Out
No matches yet
Operations too frequent. Please try again later.
Please check network settings and try again Refresh Refresh
History record delete
    Quotes All >
      News All >
        Log in to access Online Inquiry

        Fundamental Analysis

        Views 8162023.04.21

        How to perform stock market due diligence before you invest V

        We hope you understand due diligence upon the stock market. Investing your hard-earned money is risky, but if you do your proper due diligence, then you should be able to minimize those risks as much as possible. The final process below along with those previous ones is a quick snapshot of how to do your due diligence when looking to invest in stocks.

        Step 9: Expectations

        This due diligence step is a sort of "catch-all," and requires some extra digging. You'll want to find out what the consensus revenue and profit estimates are for the next two to three years, long-term trends affecting the industry, and company-specific details about partnerships, joint ventures, intellectual property, and new products and services.
        News about a product or service on the horizon may be what initially interested you in the stock. Now is the time to examine it more fully with the help of everything you've accumulated thus far.

        Step 10: Risks

        Setting this vital piece aside for the end makes sure that we're always emphasizing the risks inherent with investing. Make sure to understand both industry-wide risks and company-specific ones.
        Are there outstanding legal or regulatory matters? Is management making decisions that lead to an increase in the company's revenues? Is the company eco-friendly? What kind of long-term risks could result from it embracing/not embracing green initiatives? Investors should keep a healthy devil's advocate mindset at all times, picturing worst-case scenarios and their potential outcomes on the stock.

        Professional Analysis

        Lastly in this due diligence list, you should open up a dialogue with analysts or professionals. Get their take on the long-term trends of the company and the industry itself. After that, all there is to dissect all the information you have compiled and decide what long and short-term risks you are willing to take.

        The Bottom Line

        Once you've completed the 10 steps you should be able to evaluate the company's future profit potential and how the stock might fit into your portfolio or investment strategy. Inevitably, you'll have specifics that you will want to research further. However, following these guidelines should save you from missing something that could be vital to your decision.
        Veteran investors will throw many more investment ideas into the trash bin than they will keep for further review, so never be afraid to start over with a fresh idea and a new company. There are literally tens of thousands of companies out there to choose from.

        Trade like a pro with moomoo

        Get free stock and start your professional trading today

        Terms and conditions apply right-arrow

        This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.

        Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.

        In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).

        In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

        In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites and Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.