A rising chart can catch your attention. This checklist helps you turn that attention into a research question.
Read it here or print a copy. No account or email address needed. It is a starting point for learning, not a complete investment analysis or a recommendation to buy a stock.
What does the company actually do?
Write two sentences: what it sells and who pays for it. Record the company, ticker, exchange and share class so you know which security you are reading about.
What question are you researching?
Pick one: a headline, earnings report, financing announcement or an event. Find the original filing or announcement. Save the link and date; separate what it says from what you think it means.
How big is the company?
Check share price, shares outstanding and the dates attached to both. A low share price alone does not make a business cheap. Try the market cap example and calculator.
Are sales turning into profit?
Find revenue and net income for the same reporting period, in the same units. Sales and profit answer different questions. Read the explanation of costs and unusual items rather than relying on one headline figure.
Where is the cash going?
Read the cash-flow statement. Accounting profit and cash generation can differ. Compare cash from operations with spending and financing, and identify the reporting period.
What does it owe, and how is it funded?
Look for cash, restricted cash, debt, upcoming obligations and share issuance in the filings. Note changes in the share count. Our cash-runway calculator illustrates one simplified assumption; it cannot predict a company's survival.
What could change the story?
Describe the expected event, who announced it and how firm its date is. Write “unconfirmed” when you cannot verify it. An earnings date, trial result or regulatory decision does not guarantee a particular stock-price reaction.
What could you be missing?
Name at least two risks or gaps in the sources. Check the filing's risk factors. Include evidence that would weaken your interpretation, not only facts that support it.
What are the trading mechanics?
Notice liquidity and the bid-ask spread. Learn how market and limit orders differ. Hypothetical entry and exit prices are assumptions; a stop cannot guarantee your execution price.
How fresh is the information?
Save the period, publication date and the date you checked it. Revisit your note when the company releases new information. Understanding a company does not establish whether its stock fits your finances or risk tolerance.
Leave yourself a research note
Use these five lines again next time. If a field is unknown, write that down.
Keep your next session simple
Bookmark this page and compare your old note with the next company filing. Find more beginner lessons in Learn the market, or add our RSS feed to your reader for new guides.