What to look for when investing in stocks?

Proxy Statement

"A document sent to shareholders letting them know when and where a shareholders' meeting is taking place and detailing the matters to be voted upon at the meeting. You can attend the meeting and vote in person or cast a proxy vote.Nov 9, 2022" 

Where to find a proxy statement?

"Because proxy statements are required regulatory documents, they are kept on file for public view using the SEC's database, known as EDGAR. From the EDGAR web portal, simply enter the company's name here and select the appropriate entry to view its SEC filings, including its proxy statement.

Takeaways

• As a shareholder, you are entitled to vote by proxy on the important issues that impact a company's financials, even if you can't attend the meeting in person.
• The proxy statement provides details about management, their experience, and qualifications.
• The document also provides important information on their compensation, and whether their compensation structure is aligned with shareholder interests.
• The proxy statement can reveal potential conflicts of interests, such as related-party transactions that may not be beneficial to the company.
• Another thing to look for is company loans advanced to senior executives. These loans can deprive the company of capital, are often made on generous terms, and sometimes are forgiven, footing shareholders with the bill."

More info could be discovered reading conference-call transcripts, financial statements and newspapers.