Susan Miller’s Econ Class: How to Find Financial Information about Corporations Presented by Mrs. Berman.

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Presentation transcript:

Susan Miller’s Econ Class: How to Find Financial Information about Corporations Presented by Mrs. Berman

Who is in Charge of Your Money?

Collect comics, baseball cards, coins Safe returns Savings accounts CD’s paying.76% $1000 invested for 1 year at.76% = $

Stocks/Bonds What are they and why would we invest in them What are Stocks and Bonds? Why invest in them?

Bond Holder: You are like a Bank Lending $$ to a corporation and they are paying you interest. The name of your contract with them is a bond Stock holder: You are pay a company to purchase a stock certificate which is like owning a small share in the company. The price can go up or down. You do not have a contract with the company.

Stock Selection

How do I find a list of top businesses/companies in US? Can you give definition of a “Fortune 500” company? Fortune.com/fortune500

Think Global

What should you know about a company? *History of the Company *Products/services *Financial stability: income/debt *Future potential for grown *Performance of stock *Comparative performance against others in the industry *Newsworthy items

Summary Order Book Options Historical Prices CHARTS Interactive Basic Chart Basic Tech. Analysis NEWS & INFO Headlines Financial Blogs Company Events Message Boards Market Pulse COMPANY Profile Key Statistics SEC Filings Competitors Industry Components ANALYST COVERAGE Analyst Opinion Analyst Estimates Research Reports Star Analysts OWNERSHIP Major Holders Insider Transactions Insider Roster FINANCIALS Income Statement Balance Sheet Cash Flow

What is the P/E Ratio? Price of the stock/earnings per share Look at industry norms 20 for tech stocks 8 for textiles P/E could reflect undervaluation; overvalued; high earnings; bubble

Research In Motion Limited (RIMM) $16.52 Apple Inc. (AAPL) $ What to consider…

Chipotle Mexican Grill, Inc. Co (CMG) -NYSE McDonald's Corporation Common S (MCD) -NYSE What to consider….

INDUSTRIES

If I clicked on Airlines I would get a list

Check out your company on it’s website for up-to-date news, investor information and contact information. Write and ask for information

Sources of Information: Message Boards, Free Newsletters: If you are not paying for this information, what is it worth?

Let’s practice what we’ve learned: 1. Select a company from the Fortune 500 list and get symbol 2. Go to Yahoo Finance, put in the symbol and look up a description of the company under “Profile”

What are credible sources?

How to Access NEWSBANK via the Orange County Public Library OCPL.org Research Databases Newsbank Login :

Next lessons: 1. How to build a killer portfolio and track its progress in real time: 2. Deciding when to buy and when to sell