“It’s important to educate yourself about the economy, interest rates, exchange rates and government policy, and understand how these factors may affect a company’s performance, says the Australian Government’s MoneySmart website.” — CommBank
Share price is heavily tied to the company’s future outlook.
MoneySmart recommends asking questions like:
- Will the goods and services this company provides be in demand in the future?
- Are there opportunities for the company to grow?
- Who are the company’s competitors and are they in a strong position?
Sources such as a company’s annual report, as well as its yearly and half-yearly financial results statements, can be good places to find relevant information.