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How to perform stock market due diligence is a straightforward guide to the process of effectively researching potential stock investing opportunities. The method featured in this article along with the previous ones (How to perform stock market due diligence before you invest I & II) is the one developed and used by general investors over many years of studying companies.
Here are the next two steps you should take on your first view of new stock.
Step 5: Management and Ownership
As part of performing due diligence on a stock, you'll want to answer some key questions regarding the company's management and ownership. Whether the company is still the founders' own or is run by a board of directors? Or has management and the board shuffled in a lot of new faces?
The age of the company is a big factor here, new companies tend to have more of the founding members still around. Look at consolidated bios of top managers to see what kind of broad experiences they have. All of this information could be found in its SEC filings.
Another big thing in this part of the process is to look at whether the fou...
Here are the next two steps you should take on your first view of new stock.
Step 5: Management and Ownership
As part of performing due diligence on a stock, you'll want to answer some key questions regarding the company's management and ownership. Whether the company is still the founders' own or is run by a board of directors? Or has management and the board shuffled in a lot of new faces?
The age of the company is a big factor here, new companies tend to have more of the founding members still around. Look at consolidated bios of top managers to see what kind of broad experiences they have. All of this information could be found in its SEC filings.
Another big thing in this part of the process is to look at whether the fou...
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