Okay our previous post was all about bonds, what companies owe. What about stocks? Glad you asked.
You should have a handle on commonc stock and preferred stock by now. For more on this a great source is Chart School. Take the topics in order. Start with the Overview Tab. This takes you to another page with several topics. Please start with Fundamental Analysis. Or you can start with Why Analyze Securities? That section differs tech analysis from fundamental analysis. Click on fundamental analysis and scroll down the page. Notice how many terms we study in accounting that you see here, surprised? This is a good review of what we did this semester. Now stop and think. Look at how the ratios and terms in this section were also scattered thru various chapters of Itnermed ACCT 3110. Remember Chapter 14 and 17 in Managerial on analysis, here it is again. And you will see a lot of this in the finance courses.
Ater you re acquaint yourself with fundamental analysis, then start on technical. Technical analysis seeks to derive future stock or any other pattern from past patterns on the chart. This is also a great way to acquaint yourself with charts. As you read this you should start developing a feel for trends. This is what I meant in your presentations in Managerial that you do not just look at the numbers for one year. We are looking for trends and changes in trends. In the blank at the top right on these pages you can insert the ticker symbol for any stock and then see its chart. Try it for CFC or FNM. Do you see a change in trend?
Okay this page on stocks and the last on bonds should keep you busy before and after you unwrap Santa's presents. Believe me I wish this sort of information had been this easily available when I was in school. Seriously I spent over twenty years around the brokerage business as a broker, securities office manager, bond trader, cpa, representing folks before the IRS, you name it. The world of corporate accounting and finance is fascinating to me because it involves just about everything, well see the next post, that is enough for now with this one.
DLE
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