Question

what suitable sources of information could you access and use on financial pdocuts and markets, relating to financial and business performance information? list at least five

Answer 1

Required sources are as below:

No.1) Financial statements: this includes Income statement, Balance sheet, retained earnings statement, and cash flows statement. The company offering the financial products (like share, debenture, or bonds) must produce these statements (for last few years) and these should be evaluated very carefully for understanding the business performance.

No.2) if the shares are enlisted the share-market report must be evaluated for understanding the demand of shares in the market and its trend.

No.3) before the issuance of financial products, most company do credit ratings by renowned agencies. If the rating is AAA, then the investment there is reliable. Such credit ratings must be considered before investing.

No.4) prospectus of the company, which includes core body, management, business, future plan, etc., should be read. This gives immense idea of past, present, and future of the business.

No.5) the investor has to talk to share-market agents or brokers for understanding the root and sensitivity of various securities or bonds. Suppose a particular share price is fluctuating heavily these days; therefore, it is better not to invest there.