Stocks
Rearch
Purchase
Monitor
Funds/ETF's
Economy

Step 2 - Research Companies

Research

You and your partner now need to decided what stocks to purchase. When choosing companies you should strive to diversify your investments (see "Building a Stock Portfolio" . Make sure you write down the ticker code for the company whose stock you are going to purchase, as well as the current price per share. If you need to find a code, you can always do a symbol lookup at MSN Moneycentral or Yahoo, but remember that not all companies sell shares of stock (i.e., are public companies). The following sites provide user and pre-defined stock screeners that allow you to search for companies using criteria that you define:

Marketwatch

Google Finance

The following sites rank companies and provide recommendations (remember that it is just their opinion) on which stocks you should purchase:

U.S. News - Top rated stocks

The Street - Top stocks by industry

Marketwatch - Top industries

Heat Map - Graphical representation of top performing industries for the past year or less

Stock Splits - Although it doesn't guarantee you will make a profit, some investors believe that stock will go up in value immediately following a stock split.

Mad Money (Jim Cramer) - Jim Cramer is an entertaining stock analyst with his own show on CNBC. Free online videos of the show are available online, as well as audio podcasts.

 

If you are looking for some more in depth information on how to select stocks, you can check out the following sites:

Seven Tests of Defensive Stock Selection

Finding Investment Ideas for Your Portfolio

New Rules for Valuing Stocks

Guide to Stock-Picking Strategies

Jim Cramer's Investing Rules