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Where can you go to determine whether or not a company you want to invest in is legit?

Want to invest but what to do my research before I put my money into it. #investment #alternative-investments

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Rip’s Answer

I would agree with Christopher's answer however that would require you are at the same time very knowledgeable and comfortable with reading and understanding publicly available 8K filings and have some base level of understanding of how financial markets work (what are the risk factors) as well as a good understanding of securities law. If you are not confident in your knowledge of all that I would suggest a reasonable online resource that has some level of accreditation and high standing in the educational community. Or alternatively, you might want to hire a reputable broker from a reputable brokerage firm, who can direct you after sitting down with you to understand your investment objectives and risk tolerance. In any regards, I wouldn't recommend investing in individual securities (or even indexes or ETF's for that matter unless its very broad based such as SPY which is the ETF for the S&P 500) or any amount you are not comfortable losing. One of the more valuable no cost benefits of investing are the benefits of diversification. Not to mention that passive investments have proven a much more viable investment strategy than investing in single company securities.
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Christopher’s Answer

Read an audited 10K form if available to get an understanding of the company, its risk and exposure, and its performance and goals. You would be surprised at how many "investors" do not do the slightest amount of due diligence. If you are questioning the legitimacy of a company in the first place it may not be a good idea to invest.

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Samuel’s Answer

Morningstar is a wonderful resource for investing. In addition to that, try Yahoo Finance.
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Blake’s Answer

Hey Devetra,

I would think that if they're publicly trading then it should be a safe bet.

Thanks,
Blake
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