What do I need to know before investing in a new company?

Question by juoquine: What do I need to know before investing in a new company?

No one in my family has EVER invested money. We save. I was always taught it was a gamble, and "If it seems too good to be true, it probably is".
Someone close to me has recently invested money into a new company, and got a LARGE return in just one month. My husband is now wanting to invest as much money as we can also.
What would I even need to know before investing any money?
Please, no technical terms, like I said, I've never invested.




Best answer:

Answer by pandadiesel
Dont invest more than you can afford to lose. If they have had a huge return depending on how big its been they could be in small cap also known as oenny stocks which are very risky and you could lose alot if not all. Also if its went up alot latley i could be in need of a correction were the price would pu;; back. Hope this helps a little.

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