Before making a Micro-cap Stock investment, research should be done and questions should be asked. One of the first steps is finding out whether the stock has registered its securities with the SEC or the state’s securities regulators.
Other questions include:
Is the company making money?
How do they rank in relation to their competitors?
How liquid is this investment?
Does this investment match my investment goals?
How will this investment make money?
What must happen for this investment to increase in value?
What are the total fees to purchase, maintain and sell this investment?
It is also important that the company’s business is understood because many micro-caps have no operating history or defined business plan. Recent information about a company can be found in quarterly reports, which include the company’s current financial and business position.
To learn more basics about the stock market, please visit: http://www.qualitystocks.net/basics.php