Company-Specific Risks Described in Subsequent Chapters
Here are company-specific risk factors described in more detail in Part 2.
Financial Health
Company failure is the most disastrous stock ownership risk that you face. Shareholders typically lose their entire investment when a company files bankruptcy. Don't even think about buying a stock without first checking its financial health to make sure that it's not a bankruptcy candidate. You will learn how in Chapter 10.
Business Plan/Growth by Acquisition
Some companies are better investment prospects than others because they have superior business plans. They may address markets with little competition, produce products seen as superior by consumers, have better distribution methods, and so ...
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