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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?
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?
If it could be identified, what phase of the business cycle would be the optimal time to buy stocks?
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?
In what phase of the business cycle does output and employment bottom out and poise for the next phase of the cycle to begin?
What stage of the business cycle do income and employment begin to decline. negative growth in the economy?
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
All industries should be compared against the same benchmarks. True or false
The overall economy is generally ignored in industry analysis because each industry has unique characteristics. True or False
Industry analysis may require the analyst to look beyond the particular product niche of one corporation. True or False
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.
raw materials;
steel; and
heavy equipment. are examples of what kind of industry?
What kind of goods sell well in good economic conditions but perform poorly in Poor economic conditions?
Utilities are an example of what type of industry?
What type of industry benefits from a stagnant or contracting economy?
Household non-durable goods are examples of what industry?
An Airline is what type of industry?
a steel company is what type of industry?
What industry is a tobacco company considered part of?
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