chap3

Question 1

Descriptive Information

Answer 1

factual data on past behavior of economy, market, industry company or given investment

Question 2

Analytical Information

Answer 2

available current data in conjunction with projections and recommendations about potential investments

Question 3

Types of Information

Answer 3

Economic and current event information (Wall Street Journal; New York Times; Bank of America;

–Industry and company information (egulation FD (fair disclosure rule)

–Information on alternative investments

–Price information

–Information on personal investment strategies

Question 4

Industry and Company Information (types of information)

Answer 4

Regulation FD (fair disclosure rule): 
requires critical company information to be disclosed simultaneously to investment professionals and the public via press releases or SEC filings

Stockholders’ Report (Annual Report)

Form 10-K:
annual statement filed with SEC by all companies with publicly traded stock

Question 5

Quotations:(price information)

Answer 5

contain price information about various types of securities, including current price data and statistics on recent price behavior; CNBC TV has real-time stock quotes

Question 6

Bond yield

Answer 6

the return an investor would receive on a bond if it were purchased and held to maturity

Reported as annual rates of return

Reflects the interest payments an investor receives as well as gains or losses in the bond’s value from the date of purchase until it is redeemed

Question 7

Stockbrokers:

Answer 7

(also called account executives, investment executives, and financial consultants) act as intermediaries between buyers and sellers of securities

Must be licensed by both the SEC and the securities exchanges where they place orders

Question 8

Street name:

Answer 8

Stock certificates issued in brokerage firm’s name, but held in trust for the client who actually owns them