Kicking The Tires

AAA

DEFINITION of 'Kicking The Tires'

A slang term for researching an investment before putting any money into it. The process of kicking the tires for a stock might include reading the company's annual report, examining the company's management, looking at its historical performance, considering the company's competitors and reading news articles about the company.

INVESTOPEDIA EXPLAINS 'Kicking The Tires'

The steps involved in kicking the tires depend somewhat on the type of investment. Someone considering putting money in a hedge fund would want to research the hedge fund manager first, while someone considering putting money in a CD would want to research interest rates available at different banks and make sure their investment would be FDIC-insured.

RELATED TERMS
  1. Hedge Fund Manager

    The individual who oversees and makes decisions about the investments ...
  2. FDIC Insured Account

    An account that meets the requirements to be covered or insured ...
  3. Hedge Fund

    An aggressively managed portfolio of investments that uses advanced ...
  4. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly ...
  5. Analyst

    A financial professional who has expertise in evaluating investments ...
  6. Certified Financial Planner - CFP

    The CFP legal team has provided its official definition, along ...
Related Articles
  1. Markets

    The Impact Of Sell-Side Research

    Sell-side analysts are not stock buyers or sellers - rather, they provide unbiased guidance to traders.
  2. Fundamental Analysis

    You Can't Follow Everything: Managing Stock Research

    Don't suffer from paralysis by analysis; find out how to do an effective and manageable job of stock watching.
  3. Fundamental Analysis

    Can Investors Trust The P/E Ratio?

    The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.
  4. Retirement

    This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  5. Investing Basics

    Getting To Know Stock Screeners

    Finding good stocks can be like finding a needle in a haystack. But these invaluable tools can help.
  6. Fundamental Analysis

    Quantitative Analysis Of Hedge Funds

    Hedge fund analysis requires more than just the metrics used to analyze mutual funds.
  7. Investing Basics

    Manage My Own Investments? Are You Kidding?

    Investors need not rely on professional advisors, but going it alone isn't easy.
  8. Mutual Funds & ETFs

    How To Legally Form A Hedge Fund

    Research is key before you take any steps in forming a hedge fund, as there are many options available.
  9. Active Trading

    Data Mining For Investors

    Being an informed investor is extremely important, but where and how do you get the data for your research?
  10. Options & Futures

    Target Strategies Often Miss The Mark

    Before jumping into a tailor-made asset allocation plan, do the research - it will add years to your financial health.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center