Why to Consider Debt portion of Companies in Investment

While investing in companies many factors are important people mostly consider their profit ratio or dividend ratio because their main concern is with profit but many others factor are also important which should not be ignore the more important one is the debt portion or liability portion of the company this means that how much finance company depend on banks or other financial institute because this is the only reason where company can move to liquidate or bankruptcy not just that the amount as a interest they have to pay to their creditors which effect the overall company growth and profit that also effect your share of profit many companies increase their debt portion with out any reason just to get the advantages of tax saving so just check their debt portion and make sure the company is not so much leveraged it will help your investment to remain safe and chances to grow further .

How to Diversified Investment ?

we listen this sentence "diversified your investment" when ever we want to make the investment
specially when the economoy is facing the recession but we do not know exactly that what is
diversified investment and how we can set best investment portfolio there fore some tips has
been chosen here .

First we set all availale options of investment like in banks , property , stock , funds , business etc .

The important one the risk associate with all investment options like saftey and security , guarantee , the time period of return , chances of loss , usually higher risk give high return and where risk is low the return will also low .

the main purpose of making investment diversified is that you do not have to face the loss if you keep your investment in just one place and that person on entity face loss or became defaulter than your all money will be lost but if your investment is diversified like you make investment in four different places then somehow one give you loss but other three will give you profit so you remain safe in the end .

your profit ratio could be lower but your chances of facing loss will be zero if you have made your investment diversified very well .

How to reduce risk in Stock Market

Stock market is the riskier market you cannot reduce the risk at zero level when you enter for high returns there is chance of big loss but if we focus on few tips we can reduce the risk .

1. Blue chip   Invest in blueship companies whose chances of going down is low than others blueship companies who are famous and best one in stock market.

2. News        As we know there is great impact of news and economic condition on stock market or specific company so keep knowledge of what is happening related to economic or in the world if you thing some good news attached with company so there is chances of price to go up and if bad news is coming than chances of price go down increases. 

3. Intrinsic Value   There is always a real value behind the price of stock in the market it should be check before purchasing if the intrinsic value is low than prices falling chances are there but if the intrincic value is high than actual value then there is chance that price will go up .

4. Financial Statement we can check companies health by looking at their statements which are enclosed for public yearly quarterly and 6 month period  that information can give us best idea the most important part is their profit ratio the dividend paying ratio and also how much company is depending on loan these ratio should be good .