A stock market is a great place to be in to get good returns for your money , provided you have done your homework well. Stock research or a study of the stock under consideration is very important to make your money grow or else you can even end up losing what you have. Caution is key or else you would end up doing more bad than good.

Stock research should be carried out in a very systematic and planned manner in order to get the most out of your investment. There are a number of stocks listed on the stock exchange but to choose the right stock among them ( that is the stock that would appreciate and you would have your money growing ) is the trick. This is not some kind of magical trick that can be performed with your eyes blindfolded whereas on the other hand it is one that has to be carried out with your eyes and ears wide open. You must gather all the information available to you regarding the stock and analyse all that before reaching a final decision. The following must be kept in mind while carrying out the activity of Stock research:

1) A careful study regarding the company is very important before investing in any particular stock. The credentials of the company, its history, the business of the company. The financial standing of the company has to be analysed -a study as to the economic viability of the business of the company, the earnings, the owings of the company.

2) A comparison with the other companies in the same industry or business and the valuations of their share prices in comparison to your company.

3) The conditions that would affect the business of the company and the share prices.

4) A proper study of the financial reports of the company, shareholders reports, the publications and all other information available should be studied carefully.

A proper and systematic approach in analysis is very important as the field of business is ever changing and there are a number of factors affecting it. Therefore, a good understanding of the various pros and cons affecting and likely to affect in the future is very important.

Stock research is very important before investing in any particular stock as your hard earned money is at stake. Investing your money listening to rumours and hearsay information which may not be true is very risky. In order to avoid huge risks due to unforeseen factors stock research is very important.

Stock research helps you to identify the areas of risk and how to tackle it, when to enter or exit a particular stock. It helps in making the most of the available resources in getting a higher rate of return. You may either decide to undertake it yourself or take professional help but the importance of stock research in making sound investment cannot be undermined. Professional help is available very easily for a nominal fees. It is definitely worth paying that small amount as it is your hard earned money and taking a plunge without being equipped with adequate knowledge would otherwise land you in difficult times.

There are stocks listed on the exchange which look very attractive and whose prices keep appreciating without any strong fundamentals to back it. One has to be very wary of such stocks although we get attracted to such stocks very easily. Penny stocks are another area that should be entered into after a serious study because these stocks look very attractive at the onset but investing in some of these are only ways of losing your money. With adequate research done you would be able to identify some good profitable companies from among the penny stocks that are a very good investment and would provide good returns in the times to come. Being among the first to identify a growth story would help you be ahead of the others and earn good returns while the going is good. Stock research and a proper understanding of the market help you in avoiding the danger areas and discovering stocks that offer good value for money.

Spending a little time to analyse the past performance of the company and its financial statements would definitely ensure a safe and secure future for your investment. Any company showing negative trends should be avoided as these are signs of beginning of problems and no investor would be interested in a company that does not show any potential of value appreciation.

Thus, in order to have some control over our investment and to ensure that the investments earn the rate of return expected Stock research is very important. The importance of stock research is growing especially in a market like ours which is affected by a number of factors .Therefore for any investor (Whether small or big) a proper study and research into the working and past performance of the company is very important in fact essential.