CL King

Uncovering Hidden Investment Opportunities Since 1972

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What to Remember When Investing in Equity Capital Markets?

Investing isn't a child's play. While you might see a million investment opportunities, you need to realize that not all of them would suit you or your needs. You must learn to filter out the unnecessary or the non-profitable from the profitable. But how do you do this? Well, first of all - do your research well. Don't just research the investment profits but also the company's product and how well you know about its working. Research how the sector functions and what a company needs to do to success and grow. Also check how volatile the investment has been for at least a good three years. You want an investment that is more stable than volatile. And when you're doing your research, remember to take any analysis with not just a pinch but a whole handful of salt. It isn't beyond the realm of possibility that analysts push something that the brokers want to sell.


While you're looking at your research reports, remember this: while numbers do matter, they aren't the be-all and end-all of equity capital markets. Investments fluctuate depending on so many variables that it's difficult to keep track of them all. So when you're given numbers to crunch, don't let it become a crutch. It's best to analyze what you understand and work from there. Taking shots in the dark isn't going to help you, and if it does - it'll be just plain luck which you can't depend on for too long. What you need to depend on is your common sense. If you know something about a particular sector, then go invest in that. Because this is likely a sector where you can let your instincts guide you. But even in sectors you know something about, make sure that you follow it for a while before you jump in head first.


The most important thing that you want to decide is whether you're just in it for quick cash or whether you're in it for the long haul. Long term investments are generally a lot less risky, and tend to be diversified too. This means that if one sector does badly, another sector could pull you through. But short-term investments are risky - because you'll have to closely monitor the market immediately. The betting can be an extremely risky business because you need to know when to put your money in and when to pull it out. If you're not good at the guessing game, go in for the long-term instead.


C.L. King & Associates is a full-service investment bank and self-clearing broker-dealer. CL King’s deep buy-side relationships constitute a formidable distribution channel for stock offerings large and small. Our equity distribution complements and is differentiated from that of global banks. It includes both institutions and high-net-worth retail clients which we access through affiliated firms. Consequently, bringing incremental demand into an offering makes C.L. King an effective partner for issuers and larger underwriters.
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