In: Finance
Financial Data and Information is used by investors, managers, and regulatory bodies. Pick one of these users. Research what data and financial information they would use, how is it used, Please be detailed. Use 3 external sources (not wikipedia). 500 words minimum please.
Ans: Here I used investors, how they use financial information and data, how it is used.
The folowings are the information and data and information used by investoers:
It is essential skill for stock investors to analysis financial statements for investment like Balance sheet, Income statement, and cash flow statement along with these company's shareholders' equity and retained earning should be analysied.
Scorecards are useful for analysing and investing, million number of investors choose mutual fund for safe investment where as some will invest directly in stocks. Investing practice will seek the quality companies with strong balance sheet, solid earning and positive cash flows.
What is behind the numbers of profit? it would be products and services. Which will indicates to do ratio analysis for easy to understand companies financial position by comparion with other companies.
Diversity of reporting will help the investors to know their plans in upcoming years.
Non financial informations other than financial information will help to know companies characteristics. other informations like industry, competitive consideration, technological change, quality of management will not effect directly to financial statement.
Annual report investor must considered audided financial statements which will help to invest more money for safety.