How Does MSN Money Choose a Stock Scouter?

Introduction

The stock market can be an intimidating prospect for a first time investor. In fact, even the experienced stock investor can have a hard time deciding which stocks to buy and when to sell them. MSN money's Stock Scouter is a great resource for both the experienced investor and new investor alike in navigating the stock market.

1 to 10 Scale

The MSN Money stock scouter works using a scale of 1 to 10 to rate each stock in the system. MSN uses an advanced mathematical formula, taking in the entire history of the stock, to determine it's place on the scale. The lower the rating, the more risk involved with the stock, and the higher the rating, the less amount of risk involved in buying the stock. The system then separates the stock by rating. This means that you can choose the rating number (or the risk that you are willing to take), and view all stocks with that specific rating.

How Stocks are Rated

The stocks within MSN money stock scouter are rated using a mathematical formula. This formula works by comparing the qualities and demand of the stock, with its past performance. All of these numbers are taken in account to predict the next six month return for the stock. The risks are then compared to the returns to calculate a final score for the stock.

Additional Features

Additional features fo MSN Money stock scouter include the ability to look in depth at the benefits and risks of each stock, including professional analysts opinions about each of the stocks available. MSN stock scouter also allows you to view the history and any news related to the stock to give you a better background on not only the stock, but the company and products the stock represents.

Resources

• MSN Money Website