Buying and selling individual stocks remains a tried and true way to invest. There is something satisfying about owning a piece of a corporation. But the value of your stock holdings can change quickly-and if you have too much money tied up in only a few stocks, you could be setting yourself up for a financial fall.
All companies, foreign and domestic, are required to electronically file registration statements, periodic reports and other forms through the SEC's EDGAR system. This information can help you decide whether to invest, buy or sell a stock. Access and download EDGAR information for free.
When you buy a stock, you become a part-owner of the corporation that issued it. As a shareholder, your fortunes are tied to those of the company.