is this considered insider trading?
2007-06-22 05:01:27 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
You probably can't make a meanigful prediction. But you can try by getting all the information about the company, its operations, its management, what it plans to do, and what its prosepcts are. In other words, you have to determine what the comapny may be able to accomplish in the future. Does it have a good business plan? Is it adequately capitalized? Does it have competent management? Is there a demand for its products or services? When you answer these and many other questions you may be able to predict whether or not its stock will become more valuable than it currently is.
Above all, don't depend on a stock broker to tell you things about the company to induce you to buy the stock. They will give you only positive information, and in many cases they will give you false information.
2007-06-22 05:09:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can't. You can research the company as much as you can to help you make an informed guess.
Insider trading means making use of information that's not available to the public. If you don't work for the company, and aren't getting private info from someone who does, you don't have a problem there.
2007-06-22 12:20:58 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
You can't. That's why people are supposed to stay away from those. It's like gambling. 99% of the time you'll lose your money, but one percent of the time (but probably less) you'll be a big winner. My advice, stay away. If you want to make money read "The Intelligent Investor" by Benjamin Graham.
2007-06-22 17:50:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋