Buying stocks without reading financial reports can be likened to bankers who lend willy-nilly without doing background checks.
If the applicant is applying for a mortgage, you would also need a valuation report on the property as security for the funds to be disbursed. This report allows you to calculate the maximum loan so the bank can better recoup the principal if there is a default. Just like the bank scenario above, good stock investors need strong investment policies. Buying stocks without reading financial reports can be likened to bankers who lend to any Tom, Dick or Harry without doing background checks.
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