Why is it important to understand the competitive position of a product of a company before purchasing  the shares of the company?

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I would simply say that in order to make a wise investment, one needs to know in what they are investing.  When buying stock, it is important to know the competitive position of a company and their products so that future decisions can be made.  For example, will there be...

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I would simply say that in order to make a wise investment, one needs to know in what they are investing.  When buying stock, it is important to know the competitive position of a company and their products so that future decisions can be made.  For example, will there be future purchasing of stock in larger volume or quantity?  Is there an significant growth potential to the company in terms of their products?  These are but a few of the questions that have to be assessed before purchasing stock.  Part of knowing this comes from the fact that everyone involved in the game of investment and venture capital analysis is there to make money for themselves.  This self interest sometimes preclude full disclosure.  For example, stock brokers are thrilled to facilitate a sale of a large volume of stock.  They might assert that they would like to see you, as the investor, make a pot of money.  However, in the end, they are not going to cover the losses nor will they explain to one's spouse how Junior's college fund just disappeared as a company declared bankruptcy.  I seem to be in a movie suggesting mood, but I would suggest that you watch the film, "Boiler Room" for a great depiction of how painful this world can be.  Had Harry Renard done some level of homework in understanding the competitive position of FarrowTech, he might not have wound up in the pathetic position he did having been manipulated by Seth.

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