Here, I present some of the best stocks to invest in 2012. Investing in the best possible stocks, is a systematic process that needs careful, logical and patient analysis. The process of investing, and a few good investment options have been provided for your perusal. 
Concept of Investing in Stocks
A stock, which is also known as a common stock, is fractional equity of a company. The total stock is divided into shares (in some cases other securities such as bonds and debentures are also used), which are purchased, owned and traded by shareholders. The market value of a certain stock or share depends upon the total demand and share availability. More demand and less availability leads to price rise. The increase in demand is also caused as a result of factors such as fantastic performance of the company. The company, based upon profits and revenue, pays its shareholders a reward or an interest for their investment. This reward is known as a dividend. Thus, on the whole, you can earn money in two ways; by enjoying a dividend annually or by selling the stock when its market value rises substantially.
From the viewpoint of an investor you will have to look out for two important types of stocks, namely, the stock of a very well performing company, that has a good revenue and profit or a popular stock that has an increasing market demand. These are the very stocks to buy now, at low price and sell at a higher price, in future.
How to Find the Best Stock
In order to find some of the really good stocks to invest in, all you will have to do is study some financial and business features of the company. Here are some leads. The first thing that I would like to suggest is, check the revenue and profits of the company, from reliable sources. Fortune 500 is a very reliable source that lists the turnovers of companies on an annual basis and you can find all the information about the best stock to invest in. Similarly, the annual reports of those companies and the websites of stock exchanges also have similar resources. The past performance, past annual reports and former market prices of the shares, should be thoroughly analyzed, as they depict the usual behavior of the company and thus, it becomes quite easy to foresee what the upcoming performance might depict. Next off, reading the annual report of the company and analyzing the asset and liabilities also tends to provide a clear picture about the profitability of the business. In doing so, also consider the subsidies, recent acquisitions and interests of the company, as they too contribute to the revenue substantially. Lastly, analyze the fields in which the company conducts business. This is the most important part, as you will really get to know how the business is projected. As mentioned above, more profitable the business, more will be the demand for the share, and more will be your yield. A profitable business also indicates a very good dividend projection. Best Stocks to Invest in 2012
Choosing the best stock to invest can be a difficult task, let's face it, its like walking into a candy shop, too many choices, and we don't know what is going to taste really good and really bad. So we go by color and smell and some other similar factors. The case of stock markets is same, you need to lead up to the choices. Here are some company names that would serve to be really good leads, and could prove to be some of the best stocks for 2012. With the help of these companies, you can easily take up the research of their competitors, suppliers, related companies, customers, etc. A good starting point for stock research is Google Finance. Here are some top stocks to invest in.
Author: Scholasticus K
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