Don't leave if you are an stock market investor cause this blog could be really worthful for you. In today's world, passive income could give you more result/money than active income and best one of the best passive income source is stock/share market if you know right way to invest but more than that you should know what is the wrong way to invest in stock so, you would avoid bad stocks.
The signs of bad stocks are:
1. High debt : Always remember that a high debt is something that can put a individual/company in one of darkest side of failure ever can happen. so, the debt should always be maintain at certain level in which profit of company could easily resolve the debt problem in just 3 years.
2. Promoter's Less Holding: Well. as you might already know that if a company promoter/owners have low share holding of company than others then promoter would have that much dominance at company cause they need the permission or have to convince the person/institute who have major holding in company. For example: Do you know that once Steve jobs got fired from the company that he built in his own, Apple company.
3. Decreasing Profit: Well obviously, A company growth is determined with the profit that usually grow every year but if a company is not generating profit.
4. No Innovation: The type of company which don't use to innovate with time or situation are the company which is likely to beat up.
For Example: As many of us know that In Future, There would be the kingdom of Electric Vehicle as it give you better service and good for environment and petrol is limited too so, price of petrol would definitely gonna be increased someday but still there is many company who even don't have a model for their EV vehicle so, if they start late then their company could be "late" company unless their car model and quality isn't great enough to buy or dominant.
5. Sales decrease: If the sales of company is decreasing constantly the it's a more chance that the company gonna be in loss or doesn't grow so much, if the share price is increasing doesn't mean revenue and profit of the company is increasing but if the sales is increasing then it's high chance that the profit and revenue increase.
Comment any concern and doubts.
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