Stocks — Doing Your Homework
Radio Transcript, 60 seconds, for use during week
of October 8.
This is an Invest Wisely minute brought to you by Iowa State
When you include stocks in your investment portfolio, it pays
to do your homework. To find out about a stock’s basic
value, check out its financial statements. These are free
and contain a wealth of information.
Use these financial statements to calculate financial ratios,
such as price-to-earnings, dividend yield, and return on equity. Or
look these up on the Internet.
It’s all in the numbers. These ratios can tell you a lot
about a company’s financial health and if buying its stock
will fit your investment needs.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.