Steps to take prior to an investment
1) Obtain a prospectus or 10-K on the stock or fund.
2) Pay special attention to the Risk Factors they list, as well as the investment objective if it is a fund to assure that you have taken into account the risk factors listed and agree with the objective.
3) If this is a company, check the income statment to determine the earnings, and look at the debt ratio. Does this company have a high debt to income ratio? Lower debt is always a good sign.