1 / 24

Chapter 2

Chapter 2 Sources of Investment Information CHAPTER 2 OUTLINE 2.1 Ways of Wall Street 2.2 Internet Revolution 2.3 Investment Information on the Internet 2.4 Financial Press 2.5 Wall Street Research 2.6 Investments as a Profession Chartist/Technician Head and Shoulders Stock Quotes

Télécharger la présentation

Chapter 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.


Presentation Transcript

  1. Chapter 2 Sources of Investment Information

  2. CHAPTER 2 OUTLINE 2.1 Ways of Wall Street 2.2 Internet Revolution 2.3 Investment Information on the Internet 2.4 Financial Press 2.5 Wall Street Research 2.6 Investments as a Profession

  3. Chartist/Technician Head and Shoulders Stock Quotes Real Time EDGAR Ticker Symbol 10Q Report 10K Report Proxy Statements SEC Form 144 Stock Message Board Bullish/Bearish Stock Broker Security Analyst Portfolio Managers Certified Investment Planner Investment Banker KEY TERMS

  4. Ways of Wall Street • Caveat Emptor (Let the Buyer Beware) • “Where Are the Customers’ Yachts?” • Neither the Advice nor the Wisdom on Wall Street is free

  5. WHAT DID THEY SAY?? Wall Street & Internet Jargon • Trader Terms • Internet Terms • Technician’s Terms • Financial and Investing Glossaries on the Internet: • <http://www.matisse.net/files/glossary.html> • <http://www.siliconinvestor.com/misc/glossary/alist.html>

  6. TECHNICIANS or CHARTISTS • Pick stocks based on patterns of past price and volume data--e.g., “head and shoulders” formation--bearish indicator • Head and Shoulders: Chart formation resembling the head and shoulders outline of a person. • Technical trends can move markets in short term, but fundamentals count in longer term • Tend to look at day-to-day stock movements, often with 20/20 hindsight

  7. Widespread dissemination of information Two-way communication Cheaper and more timely than print sources Makes financial markets more democratic Reduces information-gathering costs Can be fertile space for stock price manipulation and fraud Internet Revolution

  8. THE INTERNETSo Powerful, It Brings Down Walls With a click of the mouse: • consumer news • attitudes • impressions • ideas • variety of new products and services Enemy of despots and dictators

  9. Tool for Consumers Tool for Companies E-commerce and the Internet Ready information is enemy of high prices and high profit margins as consumers shop via the ‘net • Reduce prices • Get closer to customers • Find out how to meet and exceed customer needs

  10. <http://cbs.marketwatch.com> <http://www.dailystocks.com> Financial Informationon the Internet • Stock Quotes in Real Time • Volume Information • Financial Data on: • Companies • Industries • U.S. Economy • World events • Quotes • Charts • News • SEC Filings • Stock Research Reports • Earnings Estimates • Fundamentals

  11. WHO IS EDGAR? <http://www.edgar-online.com> • Electronic retrieval analysis for SEC filings • Free website for gov. reports filed by individual companies • For-profit company that supplies investors with SEC reports and filings • Ticker symbol: unique 2,3,or 4 letter code for company

  12. 10Q: Quarterly Accounting Information 10K: Annual Accounting Information 13D: 5% Ownership Positions Form 144: Intention to Sell Restricted Stock Proxy statement or annual meeting announcement Members of top management Board of directors Large investors Stock ownership positions by managers Pay-for-performance incentives SEC REQUIRES

  13. REAL TIME QUOTES <http://freerealtime.com> • Fast-moving markets • Up-to-the-minute quotes and news • Free quote information

  14. MUTUAL FUND INFORMATION <http://www.morningstar.com> • Morningstar—watchdog group for mutual fund industry • Comprehensive, timely information and analysis • Information on sector funds

  15. STOCK MESSAGE BOARDS • Websites for anonymous individuals to post information about companies or investments • Timely information about what other investors are thinking • Can be manipulated via misinformation, rumor, and gossip <http://quote.yahoo.com>

  16. Financial Newspapers: The Wall Street Journal (print & interactive versions) Investor’s Business Daily New York Times San Francisco Chronicle USA Today Financial Periodicals: Barron’s,Business Week Forbes Fortune Inc. Money Worth FINANCIAL PRESS

  17. WALL STREET RESEARCHAnalyst Opinion Summaries • Wall Street trading firms’ opinions • Detailed information about: • Companies • Industries • Overall Economy • Global Stock and Bond Markets • Buy/sell recommendations • Bullish Consensus • Bearish Sentiment

  18. WALL STREET RESEARCHCompany Reports • Company Reports • Industry Reports • U.S. Market Outlook • Global Outlooks

  19. Investments As a ProfessionFinancial Job Market Overview • Employment opportunities in financial services expected to grow rapidly • Amount of financial sophistication demanded of finance specialists and nonspecialists expected to rise • Corporate Treasurers/CFOs • Personnel/Human Resources • Boundaries between investment and financial instruments continue to blur--> more account executives in • Commercial banks • savings institutions • insurance carriers • real estate companies

  20. CAREER OPPORTUNITIESStock Brokers & Investment Managers • Stock Brokerage: financial agents who act as go-betweens for individual buyers and sellers • Investment Management • Security Analysts: specialists who identify investment opportunities for individuals • Portfolio Managers: manage investments for individuals and institutions

  21. CAREER OPPORTUNITIESFinancial Planners • Help individuals identify and meet financial goals • Certified Financial Planners: must pass challenging exams from College of Financial Planning--equivalent to CPA • financial plan processing and insurance • investment planning • income tax planning • retirement planning/employee benefits • estate planning

  22. CAREER OPPORTUNITIESInvestment Banking • Help corporate clients meet financial needs, such as issuing stocks or bonds • Arrange to sell new securities to general public • Arrange mergers and acquisitions

  23. Review Quiz T or F Technical analysts generally consider a head and shoulders formation to be a very bullish indication. T or F EDGAR is a nonprofit company that specializes in providing investor access to SEC reports and filings. T or F SEC Form 144 filings must only be submitted by holders of restricted securities, sometimes called letter stock, after they have sold such shares to the general public.

  24. Review Quiz T or F A bearish consensus means that Wall Street analysts expect a stock price to go down. T or F An initial 13D filing would typically be regarded as bearish. T or F Stock trading on the Internet is likely to reduce stock-market volatility.

More Related