5 Questions to Answer Before Investing in a Stock

The following commentary was originally sent to subscribers of Stocks Under $10 on July 5. Click here to learn more about this dynamic portfolio and market information service.

For any new investor, or even for an experienced one, it can be tempting to buy the latest hot stock without doing much homework. As I've learned the hard way during the last 20-plus years, more often than not that only leads to trouble. How do you know how to gauge a company's business and the competitive landscape if you don't have a firm understanding of what the company does and how it makes money for itself and its shareholders?...1227 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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