How To Approach Financial Statements
Financial statements are the most important information about a company and provide information about the company’s earnings, debts, financial health, and growth rates.
The vast majority of financial analysis, research, and valuation is based on these statements, so you need to know how to read and understand financial statements.
Once you understand how they work, you can move on to financial ratios. They provide a vast amount of information and allow you to compare and contrast different items/numbers from financial statements against each other (ed2go).
There are four general researching categories:
Financial Service Company Reports
Publications are a more qualitative v. quantitative approach to data research, like the management discussion of the annual report. It tells the story of the industry, nation, economy, and outside environment, see:
Wall Street Journal
Investors Business Daily (IBD)
Your Public or College Library
The ability/inability to cope with the rapid pace of technology:
The outer means to obtain personal information (ed2go).
Is Life Becoming Programmable?
An emerging field called synthetic biology where DNA codes and materials are spun into fibers the way traditional fibers are made; this is a new era of material manufacturing.
Scientist reengineer the genetics of living organisms to make products such as food sweeteners, to leather-to wood composites. Synthetic biology companies nabbed $1bn from investors, double the amount from 2014, says SynBioBeta, (Fortune/Feb.2017)
Finance & Fashion
âDepartment stores used to dominate the apparel market. They are failing and closing hundreds of stores after years of declining customer traffic and sales. Walmart and Amazon are dominating the market.
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Liberalism is an economic concept that a government should not try to control prices, rents, and/or wages, but let open competition and forces of demand and supply create an equalibrium between them that benefits the vast majority of citizens. It differs from the doctrine of Laissez Faire in its acceptance of the government intervention to control creation and spread monopolies and in distribution of public good. It favors redistribution of income through taxes and welfare payments,(business dictionary.com)
Starbucks plans to open its first shop in Italy, its most intimidating market. The Chain stated it would open in Milan in 2017, in partnership with Italian developer Percassi. Italy proves a challenge to Starbucks as coffee is a deep part of the culture.
The Starbucks store in Italy will be owned and run by Percassi, the licensee. Starbucks has presence in Europe, but has not been successful there...(Marietta Daily Journal/March 1, 2016).
Equilibrium= the state of stable conditions, which all significant factors remain more or less constant over a period and there is little or no inherent tendency for change.
Ex: a market is said to be in equilibrium if the amount of goods that buyers wish to buy at a current price is matched by the amount the sellers want to sell at that price, aka, steady state.
Poverty Line= standard family income threshold (set by each state and revised occasionally) below which the family is officially classified as poor and entitled to welfare assistance.
Ex: social service organizations such as Head Start Program give preference to low-income clients whose income falls at/below the poverty line.
The merger of companies at the same stage of production in the same/different industries. When the products of both companies are similar, it is a merger of competitors. When all producers of a good/service in a market merge, it is the creation of a monopoly. If only a few competitors remain, it is known as oligopoly, aka, lateral integration/vertical integration (businessdictionary.com)