Questions from General Investment


Q: What are the four stages of an industry’s growth cycle? Which

What are the four stages of an industry’s growth cycle? Which of these stages offers the biggest payoff to investors? Which stage is most influenced by forces in the economy?

See Answer

Q: What is fundamental analysis? Does the performance of a company have

What is fundamental analysis? Does the performance of a company have any bearing on the value of its stock? Explain.

See Answer

Q: Why do investors bother to look at the historical performance of a

Why do investors bother to look at the historical performance of a company when future behavior is what really counts? Explain.

See Answer

Q: What is ratio analysis? Describe the contribution of ratio analysis to

What is ratio analysis? Describe the contribution of ratio analysis to the study of a company’s financial condition and operating results.

See Answer

Q: Contrast historical standards of performance with industry standards. Briefly note the

Contrast historical standards of performance with industry standards. Briefly note the role of each in analyzing the financial condition and operating results of a company.

See Answer

Q: What is intrinsic value? How does it fit into the security

What is intrinsic value? How does it fit into the security analysis process?

See Answer

Q: How would you describe a satisfactory investment? How does security analysis

How would you describe a satisfactory investment? How does security analysis help in identifying investment candidates?

See Answer

Q: Would there be any need for security analysis if we operated in

Would there be any need for security analysis if we operated in an efficient market environment? Explain.

See Answer

Q: Describe the general concept of economic analysis. Is this type of

Describe the general concept of economic analysis. Is this type of analysis necessary, and can it really help the individual investor make a decision about a stock? Explain.

See Answer

Q: Why is the business cycle so important to economic analysis? Does

Why is the business cycle so important to economic analysis? Does the business cycle have any bearing on the stock market?

See Answer