Questions

Questions for Chapter 1

Review questions:

Q-1A.1 What is the professional title sought by financial analysts?
Q-1A.2 What is the name of the American organization that awards titles to financial analysts?
Q-1A.3 Is testing for financial analyst credentials taking place only in the United States or throughout the world? Which organizations administer the testing?
Q-1A.4 Is Russia one of the most advanced countries in terms of financial analysis? Explain.
Q-1A.5 Are professional financial analysts usually referred to as generalist?
Q-1A.6 What language is the language of finance?

Q-1B.1 Is there a universal concept of value? What is it?
Q-1B.2 Does everyone give the same assessment of value for a particular asset or stock?
Q-1B.3 Is a measurement of value exclusively dependent on merits of the asset or company? Explain.
Q-1B.4 What different types of comparison need be conducted when evaluating an investment?
Q-1B.5 Is value based on existing measures or forecasted estimates?
Q-1B.6 Does an investment or asset keep the same value over time, or is value changing constantly?

Q-1D1.1 What is the document containing financial statements all corporations give to their shareholder each year?
Q-1D1.2 List the different parts of an annual report.
Q-1D1.3 What is the name of the government agency overseeing corporate public information?
Q-1D1.4 When was this government agency created?
Q-1D1.5 What statute created the agency?
Q-1D1.6 What is the document filed by each American corporation with the SEC?
Q-1D1.7 Does the SEC verify the information in the 10-K?
Q-1D1.8 What additional information is contained in 10-K, that is not present in the annual report?
Q-1D1.9 Do American corporations have to file documents in their own state in addition to the SEC filing?
Q-1D1.10 What is the name given the laws that create state supervision over potential speculative stock issue schemes?
Q-1D1.11 Name the major American investor information services.
Q-1D1.12 Do S&P and Moody's rate stocks, corporate bonds or municipal bonds?
Q-1D1.13 What types of publications are obtainable from S&P?
Q-1D1.14 What types of publications are available from Moody's?

Q-1D2.1 What is the major source of information on specific industries?
Q-1D2.2 What branch of US government is responsible for statistical financial and economic data?
Q-1D2.3 What are the major sources of historical ratio data of US companies?

Q-1D3.1 What are the major publications of economic statistics in the United States?
Q-1D3.2 In which publication can economic indicators be found?
Q-1D3.3 What is the major source of information on monetary conditions in the United States?
Q-1D3.4 What free publications are available from a few major American banks?

Q-1D4.1 List the major (four or five) major stock market indexes.
Q-1D4.2 Give the number of companies included in each of the indexes you named
above.
Q-1D4.3 Give the date each of the above indices was started.
Q-1D4.4 Are stock market indexes all calculated the same way? Give the different methods.
Q-1D4.5 What is the name given to stocks included in the Dow Jones Industrial Average?
Q-1D4.6 What are other market statistics regularly published?
Q-1D4.7 Where can historical stock market data can be found?
Q-1D4.8 Where can recent stock price behavior be found?

Q-1D5.1 Name a few major financial daily newspapers.
Q-1D5.2 Name a few of the major investor professional periodicals (i.e. weekly or bi-weekly).
Q-1D5.3 Name a few of the major financial professional journals (monthly or quarterly).

Q-1D6.1 What information is available from stock brokers free of charge?
Q-1D6.2 Name a few major American brokers.

Q-1D8.1 What are some of the sources of international financial and economic data?

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Last modified: Jun/01/01 Next: Exercises, Cases & Assignments