Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/36

Click to flip

36 Cards in this Set

  • Front
  • Back
Industry analysis is a type of investment research that begins focusing on the status of a?
Industry or sector
Refers to the somewhat simultaneous ups and downs in most parts of the economy?
Business or Economic cycle
Is defined as a period of economic decline in a business cycle?
Contraction
Is defined as a period of economic Rise in the business cycle?
Expansionary period
Represents a broad measure of economic activity and a signal of the direction of overall economic activity?
GDP (Gross domestic Product)
One of the most important Economic indicators?
GDP (Gross Domestic Product)
The bottom of a business cycle?
Trough
If it could be identified, what phase of the business cycle would be the optimal time to buy stocks?
Trough
To assess whether the economy is in recovery or decline, analysts are most likely to track?
Gross Domestic Product
Recessions may lead to a decline in?
Consumption and investment spending
What stage of the business cycle is it when businesses are operating full steam, employment is at or near maximum levels, GDP output is at its upper limit, implying very little waste occurring; and income levels are increasing?
Peak
In what phase of the business cycle does output and employment bottom out and poise for the next phase of the cycle to begin?
Trough
What stage of the business cycle do income and employment begin to decline. negative growth in the economy?
Contraction/Recession
what stage of the business cycle is it when the economy moves out from the bottom experienced at the trough, growth begins and increases in momentum, and employment, production and income all undergo a period growth
Expansion
All industries should be compared against the same benchmarks. True or false
False
The overall economy is generally ignored in industry analysis because each industry has unique characteristics. True or False
False
Industry analysis may require the analyst to look beyond the particular product niche of one corporation. True or False
True
It makes sense that price to earnings ratios of all corporations be compared against one standard because investors naturally seek the highest returns. True or False.
False
raw materials;
cars;
chemicals;
construction;
paper;
steel; and
heavy equipment. are examples of what kind of industry?
Cyclical
What kind of goods sell well in good economic conditions but perform poorly in Poor economic conditions?
Cyclical
Utilities are an example of what type of industry?
Non-Cyclical
What type of industry benefits from a stagnant or contracting economy?
Non-Cyclical
Household non-durable goods are examples of what industry?
Non-Cyclical
An Airline is what type of industry?
Cyclical
a steel company is what type of industry?
Cyclical
What industry is a tobacco company considered part of?
Non-Cyclical
What type of industry does the stock price tend to move in the opposite direction of the general economic trend?
Non-Cyclical, Counter Cyclical
What do they call a falling market?
Bear Market
What do they call a growing market?
Bull market
What type of investor compares current share price to intrinsic value rather than historic share price?
Value investor
What type of investor disagrees with the principle that high beta has to mean a risky investment?
Value Investor
Value investing current price against?
intrinsic value
Value investors in particular may see periods of economic decline as?
Buying opportunities
what is an attmept to predict the performance of a stock through the study of its issuers financial situation and prospects?
Fundamental analysis
In the fundamentalist perspective what would an investor do if the intrinsic value of a stock is above the current market price.
The investor would purchase the stock
In the fundamentalist perspective what would an investor do if the intrinsic value of a stock is below the current market price?
the investor would sell the stock or take a short postion in the stock