Individual Investment Risk Control

A series scandals of corporation fake fiscal accounts have dampened the confidence of investors who started to worry about the stocks bought with their hard-owned money would be vanished some day because of the fake fiscal accounts issues. This essay is intended to discuss the following issues; how to figure out the problems in an enterprise by reviewing it's financial reports in conjunction with an quality analysis to the enterprise's environment, how to assure the security of capitals by managing the risks in the investment From the perspective of risks and those environmental factors that may affect the quality of the financial Statement, it takes the bankrupt ion of Worldcom and Zhengbaiwen Affairs as case studies and it tries to explain the importance of recognizing risks through the analysis over financial Statement, it also provides with some useful skills for identifying some of the key items in the balance sheet and purifies the profit by sorting the messages in the profit sheet and discusses about the ways of statement cash flows and how to recognize it. This article advocates for analysis on the resources beyond the financial Statements to assure the decisions made for the investment as correct and accurate, in the mean time this essay emphasizes the importance of analysis on the auditing reports and the ability to get messages through lines of the reports and to revise the existing assessment systems to minimize our errors an mistakes in analysis. It is equally important to understand the risks caused by the debt structures and the financial risks in a high growth. Appealing for enforcing supervisions of the mediators in order to protect the interests of medium and small investors.