All other factors remaining the same, you return on your investment of $1,000 in this case will be the same irrespective of the number of shares you own.

You should always go for the of an established company with a consistent track record of good performance. This advice stands good especially for those investors who do not have any experience or understanding of the market or who do not have any idea of fundamental or technical analysis and so on. This is a kind of rule of thumb for investing.

Most popular companies have some thing about them, some indefinable qualities that marks them out from their competitors. This "something" factor' is unique to each company and it is indelibly etched in the mind of the public at large. This unique trait cannot be copied by their rivals. For example, look at Coca Cola, Wal-Mart, McDonald or Apple. The logo of Apple, for example, evokes a strange confidence that no other company in the same industry can. Such companies stand alone and no amount of competition can beat them. Quite possibly companies, like Coca Cola, have their own trade secrets which render them invincible.

These companies often stand by their investors and do not let them down even when the values of their stocks fall. Such companies even try to buy their own in order to maintain its value. There are other companies which pay good dividends to their investors regularly, the market value of their notwithstanding. It must be interesting to note that some investors even sell their good value stocks and invest in these companies solely on the ground that they pay good dividends that substantially make up for the lower market value of their stocks. These companies have a loyal following of investors who are immune to the temptations of their competitors.

Learn about the management of the company you want to

invest in
Companies flourish because of the honest policies of their managements. Great managements have honesty as their best policy. But how can an ordinary investor know that a company's management is honest? The best way is to study the history of the company since its inception. If the management has ever made some mistake in conducting the affairs of the company some time, it would not hesitate in offering explanation, admitting it publicly and apologizing for it too. Good and honest managements not only apologize for their lapses, they also reasonably compensate their investors who suffer for those mistakes.

Buying good value stocks at cheaper rates

Sometimes companies with truly good track record face emergent financial situations and they are compelled to sell out their stocks at much reduced rates than their actual value. The market may be facing bear hug. Such situations, even though transient, may bring down the prices of their stocks. If you are lucky, you may even get such a high value even at 50% discount. A market savvy and vigilant investor can always lap up such opportunities.

Look for institutional investors

Institutional investors have their expert financial analysts. They keep a watch over the market in all its respects. Their level of specialized knowledge is not available even with the most experienced and well-informed individual investors. If you do not know any thing about investing in markets, the best course is to keep a watch over the institutional investors. Always buy the stocks of the companies that have institutional sponsorship.

General awareness

Internet is a great source of information but there are hundreds of websites giving confusing and contradictory information about investing Devote sometime on two or three websites that provide reliable information. The next step is to try to find out the most lucrative financial or industrial sectors and the best managed companies in those sectors. Keep a track of their performance. Study their financial reports, their P/E ratios and do all kind of analysis on their performance. This way you can land on good stocks. Do not invest in just one stock. Diversify your portfolio.