Financial Analysis Fundamentals

Front 1

Industry analysis is a type of investment research that begins focusing on the status of a?

Back 1

Industry or sector

Front 2

Refers to the somewhat simultaneous ups and downs in most parts of the economy?

Back 2

Business or Economic cycle

Front 3

Is defined as a period of economic decline in a business cycle?

Back 3

Contraction

Front 4

Is defined as a period of economic Rise in the business cycle?

Back 4

Expansionary period

Front 5

Represents a broad measure of economic activity and a signal of the direction of overall economic activity?

Back 5

GDP (Gross domestic Product)

Front 6

One of the most important Economic indicators?

Back 6

GDP (Gross Domestic Product)

Front 7

The bottom of a business cycle?

Back 7

Trough

Front 8

If it could be identified, what phase of the business cycle would be the optimal time to buy stocks?

Back 8

Trough

Front 9

To assess whether the economy is in recovery or decline, analysts are most likely to track?

Back 9

Gross Domestic Product

Front 10

Recessions may lead to a decline in?

Back 10

Consumption and investment spending

Front 11

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?

Back 11

Peak

Front 12

In what phase of the business cycle does output and employment bottom out and poise for the next phase of the cycle to begin?

Back 12

Trough

Front 13

What stage of the business cycle do income and employment begin to decline. negative growth in the economy?

Back 13

Contraction/Recession

Front 14

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

Back 14

Expansion

Front 15

All industries should be compared against the same benchmarks. True or false

Back 15

False

Front 16

The overall economy is generally ignored in industry analysis because each industry has unique characteristics. True or False

Back 16

False

Front 17

Industry analysis may require the analyst to look beyond the particular product niche of one corporation. True or False

Back 17

True

Front 18

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.

Back 18

False

Front 19

raw materials;
cars;
chemicals;
construction;
paper;
steel; and
heavy equipment. are examples of what kind of industry?

Back 19

Cyclical

Front 20

What kind of goods sell well in good economic conditions but perform poorly in Poor economic conditions?

Back 20

Cyclical

Front 21

Utilities are an example of what type of industry?

Back 21

Non-Cyclical

Front 22

What type of industry benefits from a stagnant or contracting economy?

Back 22

Non-Cyclical

Front 23

Household non-durable goods are examples of what industry?

Back 23

Non-Cyclical

Front 24

An Airline is what type of industry?

Back 24

Cyclical

Front 25

a steel company is what type of industry?

Back 25

Cyclical

Front 26

What industry is a tobacco company considered part of?

Back 26

Non-Cyclical

Front 27

What type of industry does the stock price tend to move in the opposite direction of the general economic trend?

Back 27

Non-Cyclical, Counter Cyclical

Front 28

What do they call a falling market?

Back 28

Bear Market

Front 29

What do they call a growing market?

Back 29

Bull market

Front 30

What type of investor compares current share price to intrinsic value rather than historic share price?

Back 30

Value investor

Front 31

What type of investor disagrees with the principle that high beta has to mean a risky investment?

Back 31

Value Investor

Front 32

Value investing current price against?

Back 32

intrinsic value

Front 33

Value investors in particular may see periods of economic decline as?

Back 33

Buying opportunities

Front 34

what is an attmept to predict the performance of a stock through the study of its issuers financial situation and prospects?

Back 34

Fundamental analysis

Front 35

In the fundamentalist perspective what would an investor do if the intrinsic value of a stock is above the current market price.

Back 35

The investor would purchase the stock

Front 36

In the fundamentalist perspective what would an investor do if the intrinsic value of a stock is below the current market price?

Back 36

the investor would sell the stock or take a short postion in the stock