Reference no: EM132096249

Question: There are a lot of information to take into consideration when making decisions about investments. According to U. S. Securities & Exchange Commission (n.d.), there are at least ten things investors should consider before investing in a company. Here I have listed the top three suggestions they have advised:

1) Draw a personal financial roadmap. Thoroughly review your current financial status and determine if you're are able to take a gamble with an investment.

2) Discover your comfort level on risky business. You should have an understanding and stand firm on your decisions about an investment. And also be aware that you stand a chance to lose or gain money.

3) Invest in different categories. Having investments in multiple asset-categories reduces the chances of losing money because categories don't move up and down at the same time.

When evaluating a capital investment project, there could be significant information you may need to help make a sound decision. Gaining the understanding of different investment options, such as stocks or bonds, could help investors gain a financial security over time, and even having the independency of managing their own money.

References: Gapenski, Louis C.; Reiter, Kristin L. (2016). Healthcare Finance: An Introduction to Accounting & Financial Management. Chicago, IL: Health Administration Press.

U.S. Securities and Exchange Commissions. ( n.d.). Financial Navigating in the Current Economy: Ten Things to Consider Before You Make Investing Decisions.