1) What does the company do?
Is the company's business model easy to understand?
2) Would you buy and use the company’s products or services? Can you see consumers wanting to purchase the company's products or services?
3) Is there a market opportunity for the company? Could the company's products or services define a market or category?
4) Does the company have competitive advantage? Can the company become a leader in which other companies will want to utilize their services or products?
5) Does the company have any competition? Are there any other credible players in the market space?
6) Is the company well financed? Does the company have enough capital or credit to maintain it's business?
7) Does the company have the proper management team? What is the management background and do they have a track record of success?
8) Does the company file their filings on time? Make sure the company files their quarterly and yearly financials on time. (View at edgar-online.com)
9) Always do your due diligence. Gather as much information on the company so you can make an educated decision. (websites, advisors, press releases or brokerage account resource centers)
10) Understand that no investment is a sure thing! Only invest money that you can afford to lose.