Making the Most of Research on Publicly-Traded Companies

Use information in conjunction with a standard public business profile to make wise investments

Deciding to invest in publicly traded companies is a decision which takes a considerable amount of research. Some investors read only basic information about the company. While this strategy works sometimes, it is often necessary to research publicly traded companies more thoroughly in order to make a good investment decision.

Making the most of research on publicly traded companies involves sorting through information that some investors simply glance at. When you are researching potential investments, consider the following suggestions:

1. Take press releases and publicized news from the publicly traded company into account.

2. Determine how the company handles trends and changes in the economy by scrutinizing past stock quotes.

3. Obtain a copy of all records on the company, including financial records and annual records, to determine the spending habits of the company.

 

Get updates on news from publicly traded companies

Publicly traded companies issue press releases and other company news to alert stock holders and potential investors of what is going on in the company. While these updates aren't usually included in a public business profile, they are valuable tools in determining if you should invest in the company.
Try: The U.S. Securities and Exchange Commission keeps records of the press releases publicly traded companies put out. You can search current records, archived records or records for one specific company. You can search for news about publicly traded companies at MSN Money. This website offers searches by stock symbol.

Check stock information on public companies

When you are researching public companies, checking stock information allows you to determine how the companies fare during economic events and other external factors. Using this information in conjunction with the other information you collect enables you to make the most appropriate decision concerning your investments.
Try: You can get up to the minute stock information on publicly traded companies at Yahoo! Finance. This website also provides public company analysis of past performance. Quote.com has instant stock quotes. This company offers tools to help investors interpret the data presented.

Find past records of the publicly traded corporation

Looking at a publicly trades company's past records, such as archived annual records and financial records, can tell you a lot about a publicly traded company. These records show you how a company spends the money it earns. This gives you a basis to determine how you think the publicly traded corporation will perform financially in the future.
Try: You can find annual reports, which includes financial reports, of many publicly traded companies at Public Register's Annual Report Service. You can search by state and exchange, or industry to make your search easier. InvestorGuide.com offers an alphabetized search for research on publicly traded companies. You can also search by industry or sector, if desired.

 

• If you are still unsure about the future of the publicly traded company after reviewing the research, consider getting a forecast for the company. There is software available for forecasting or you can get a forecast from a stock broker or analyst.

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