Find out exactly what the company does and as much about its sector as you can.
While a company's annual report and balance sheet will provide you with statistics about recent performance, a good understanding of the company's position in the market will prove far more beneficial.
Remember, the price of shares moves in accordance with supply and demand, not statistics and how a company has performed in the past is not necessarily an indication of how it will perform in the future.
Answering the following questions is a good place to start:
You can get a comprehensive picture of a particular company using our Find an investment or read our view on each sector written by the Advice team.
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