Some General Guidelines for Investing in Securities:
Investing in securities is an art & a science having rules & regulations. It requires thorough knowledge & practical experience to assist one in choosing what is better among the various available investment opportunities in the market.
Key guidelines that may be provided here include the following:
- Specify investment goals: the investor must specify his investment goals accurately & effectively.
- Conformity among dividends & risks: this can be done via analyzing the financial status of issuing companies securities & establishing a diversified securities portfolio to decrease risks & increase profits.
- Benefit from all available information & data on securities: this assists in assessing the status of issuing companies securities, whether via financial statements (budgets-profits & losses accounts-cash flow statements & clarifications stated in periodic reports issued by companies) or via press releases & information that companies must disclose by virtue of effective legislations.
- Review the historical background of issuing companies securities: observe companies future outlook & review future trends of securities prices.
- Pursue constantly, trends of the market & economy: review in general & on the national level fluctuations in the economy, finance & monetary.
- Seek assistance from specialized parties: provide financial consultations, in condition that these parties have technical capacities, experiences & qualified staff to do so.
- Take into account, effects of economic, political, regional & international changes on the national economy in general & on issuing companies securities in particular.
- Review the capacity of issuing companies securities: in benefiting from technical developments & in developing production. As well, reviewing markets for company products & current & future competitive capacity.
- Select a broker that best provides services for clients to create an atmosphere of competitiveness among brokers & to improve services they provide.
- Small investors, lacking sufficient experience to deal with securities can invest in mutual funds & in institutions running investment portfolios. These funds & institutions provide qualified staff to run investment portfolios & provide an opportunity to diversify investments thus, diversifying risks.