Deck 4: Sources of Investment Information

Question 1

The Survey of Current Business,Key Business Ratios and Robert Morris Associates are all good sources of information for industry analysis.

Answer 1

True

Question 2

Standard & Poor's Bond Guide is a monthly booklet providing information to investors on corporate and convertible bonds.

Answer 2

True

Question 3

Both Mergent (Moody's)and Standard & Poor's publish a Dividend Record which provides dividend information to investors.

Answer 3

True

Question 4

Standard & Poor's Analysts Handbook provides a classified index of industrial companies listed by SIC number.

Question 5

Value Line Investment Survey follows 1700 companies,using a unique valuation system which depends on historical relationships and regression analysis.

Question 6

A cross index of companies which provides names,addresses,phone numbers and sales is Dun's Marketing Services Billion Dollar Directory.

Question 7

Compustat is PC based system aimed at the individual investor and provides comprehensive information on financial data for over 3,000 companies.

Question 8

While the SEC requires the l0-K report to be filed annually the 8-K,which covers important events of which stockholders should be aware,is filed quarterly.

Question 9

Year-end Corporate Reports for NYSE stocks are selected and bound in an annual publication called Standard & Poor's Stock Guide.

Question 10

Economic information is available on the Internet for a fee on HYPERLINK "http://www.economy.com/freelunch" www.economy.com/freelunch.

Question 11

References to Wall Street Journal Articles are sometimes found in the Business Periodicals Index.

Question 12

The Survey of Current Business contains a monthly update and evaluation of GNP,business inventories,personal consumption,fixed investment,exports,labor market statistics,financial data,and more.

Question 13

A Federal Reserve Bulletin is published monthly by each of the 12 Federal Reserve Banks in the Federal Reserve System.

Question 14

You can access each of the 12 Federal Reserve Banks either through the Federal Reserve Board or each bank's individual Internet Site.

Question 15

The National Bureau of Economic Research has successfully used economic indicators to identify peaks and troughs in the business cycle.

Question 16

National Economic Trends,published monthly by the St.Louis Federal Reserve Bank,is a good source of raw data on economic time series.

Question 17

Value Line Investment Survey is a publication of Standard & Poor's Investment Services.

Question 18

Standard and Poor's NetAdvantage is S&P single on-line source for industry surveys,company stock reports,corporate records,and other data that is also available in print form.

Question 19

Comprehensive investment advice can be found in such periodicals as Barron's,Forbes and Fortune Magazine.

Question 20

Detailed information on yields on commercial paper,and corporate and municipal bonds is published weekly by the Federal Reserve Bank of St.Louis.

Question 21

Morningstar is one of the largest mutual funds in the U.S.

Question 22

Standard and Poor's Stock Reports provide a 10 year summary of abbreviated financial data from the income statement and the balance sheet.

Question 23

Mergent is best known for its detailed reports on mutual funds.

Question 24

The San Francisco Federal Reserve Bank,has an interesting array of economic graphs available on the Internet that are updated as new economic data is reported.

Question 25

The World Federation of Exchanges HYPERLINK "http://www.world-exchanges.org/" www.world-exchanges.org offers links to stock exchanges around the world.

Question 26

Barron's is a weekly magazine providing comprehensive data on the economy,world and domestic markets,bonds,stocks,options,futures and much more.

Question 27

The Business Periodicals Index references subjects in approximately 170 periodicals in fields of accounting,advertising,banking,communications,economics,finance etc.

Question 28

Because the SEC has the power to regulate trading on the exchanges and to require corporate disclosure of information relevant to stockholders of publicly traded companies,they do not publish or make this information available to the public.

Question 29

One would expect to find information on motor vehicles,banking,national income and inflation statistics in the Survey of Current Business.

Question 30

The Federal Reserve Bulletin contains an abundance of monetary data,fiscal data and banking data.

Question 31

A prospectus must be issued whenever a new offering of securities is made to the public.

Question 32

Morningstar Inc.is best known for its data on mutual funds.

Question 33

You can find the same economic data on any of the 12 Federal Reserve Bank's Internet Site.

Question 34

Robert Morris Associates provides the majority of data on international stock markets.

Question 35

The SEC currently sells its data to the public on the Internet.

Question 36

The Survey of Current Business is published by the Conference Board.

Question 37

You can now get 10K statements from the Securities and Exchange Commission on the Internet.

Question 38

Dun and Bradstreet is known for its comprehensive data on no-load mutual funds.

Question 39

An investor could find consensus earnings per share for the 30 Dow Jones Industrial Companies in Barron's.

Question 40

Economic time series data for leading,lagging and coincident indicators can be easily found in the Survey of Current Business.

Question 41

Morningstar also covers the following besides mutual funds:

A)Common stocks and exchange traded funds
B)Corporate bonds
C)Puts and calls
D)U.S.Treasury Securities

Question 42

The World Wide Web has become very important to investors mostly because they can now access EDGAR-online.

Question 43

The Federal Reserve Bank of St.Louis publishes _____ weekly,which contains comprehensive data on the monetary base,bank reserves,the money supply,interest rates,and other topics.

A)Federal Reserve Bulletin
B)U.S.Financial Data
C)Economic Perspectives
D)Survey of Current Business

Question 44

Standard Industrial Codes (SIC)can be used to

A)Find all companies in the same industry or subset of an industry
B)Identify the security number of each company's common stock
C)Divide a large company's sales into its various industry sectors
D)A and c

Question 45

The University of Chicago maintains a database called CRSP that has a long time series of earnings,stock prices,volume,cash dividends,stock dividends and stock splits.

Question 46

Standards & Poor's _____ is a monthly publication containing concise,thumbnail sketches of several thousand companies and nearly 200 mutual funds as well as recommended stock for capital appreciation and income.

A)Corporation Records
B)Stock Guide
C)Corporation Reports
D)None of the above

Question 47

Which of the following statements about Value Line Investment Survey is NOT ?

A)It is generally less comprehensive than Standard & Poor's and Moody's Manuals
B)Companies are evaluated based on historical relationships and regression analysis,and not on human judgment
C)Companies are listed by industry within one of thirteen sections
D)All stocks are rated one through five with one being the highest

Question 48

_____ is a monthly publication of the St.Louis Federal Reserve Bank containing raw economic data with trend changes over time and compound annual rates of change.

A)U.S.Financial Data
B)National Economic Trends
C)Monetary Trends
D)None of the above

Question 49

_____ would probably be used to compare the financial ratios of a company with those of the industry.

A)Key Business Ratios
B)Robert Morris Associates
C)Dow Jones-Irwin Business Almanac
D)Mergent (Moody's)Industrial Manual

Question 50

Mergent (Moody's)_____ is a quarterly reference guide containing general information on about l,000 companies,while Mergent (Moody's)____ provides quarterly dividend information.

A)Stock Survey; Dividend Record
B)Handbook of Common Stock; Dividend Record
C)Handbook of Common Stock; Stock Survey
D)Bond Facts; Bond Record

Question 51

_____ is a monthly publication containing exhaustive information on current bond issues.

A)Mergent (Moody's)Bond Record
B)Mergent (Moody's)Bond Survey
C)Standard & Poor's Bond Guide
D)More than one of the above

Question 52

Characteristics of Mergent (Moody's)Manuals include all of the following EXCEPT

A)They contain a list of officers and corporate information
B)They are divided by trade category
C)They contain comprehensive data on bonds and stocks
D)All of the above are characteristics

Question 53

References to newspaper articles are NOT listed in

A)The Wall Street Journal Index
B)The Funk and Scott Index of Corporations and Industries
C)The Business Periodicals Index
D)More than one of the above

Question 54

The Federal Reserve Bulletin would least likely contain information on

A)International transactions and exchange
B)Legislation regulating financial institutions
C)State budget figures
D)Interest rates

Question 55

Information on U.S.,Canadian,and international companies covering fujll balance sheets and income statements,corporate profiles,subsidiary and division information,SEC reports,and new and press releases may be found in Standard & Poor's

A)Corporation Records
B)Analysts Handbook
C)Investment Advisory Survey
D)None of the above

Question 56

The unique feature of the Survey of Current Business is

A)It is published by the Bureau of Economic Analysis of the U.S.Department of Commerce
B)Its emphasis is on cyclical indicators of economic activity
C)It covers several decades of aggregate economic activity
D)None of the above

Question 57

Information on put and call options may be found in Value Line's

A)Investment Survey
B)Options and Convertible Bond Survey
C)Special Situations
D)More than one of the above

Question 58

The Survey of Current Business differs from National Economic Trends because

A)It contains data broken down by industry
B)It includes compound annual growth rates
C)Each publication covers different topics
D)All of the above

Question 59

The analyst looking for historical financial data to forecast economic activity,would find the following in the Federal Reserve Bulletin.

A)Domestic financial statistics and international statistics
B)Monetary and credit aggregates and real estate mortgage data
C)Securities markets and corporate finance data
D)All of the above can be found in the Federal Reserve Bulletin

Question 60

Which of the following is a characteristic of Standard & Poor's Corporation Reports?

A)More detailed information than the stock guide
B)Grouped into volumes based on the exchange on which the company's stock is listed
C)Each company is updated quarterly on earnings,dividends and other relevant information
D)All of the above

Question 61

Sources of market price information data bases include all of the following EXCEPT

A)The Center for Research in Security Prices
B)Value Line Investment Survey
C)The Federal Trade Commission
D)Standard and Poor's Compustat

Question 62

The 10K report is

A)A quarterly report to the Securities Exchange Commission providing financial statements,changes in stockholders,and other significant corporate changes
B)A monthly report to the SEC of insider stock activity by officers and directors as well as large stockholders owning more than 5% of the companies shares outstanding
C)An annual report to the SEC providing a company's detailed annual financial statements.While it has the same information as the annual report to stockholders,there is often more detail in the 10K
D)Issued to the SEC any time a significant corporate event occurs such as change of control,bankruptcy,change of officers,etc

Question 63

All of the following are included in a Value Line Investment Survey except:

A)Each common stock is covered by a one page summary
B)Price history patterns in graphic form
C)An evaluation of each common stock by a Value Line financial analyst
D)A breakdown of sales and profit margins by line of business

Question 64

The 8K report is

A)A quarterly report to the Securities Exchange Commission providing financial statements,changes in stockholders,and other significant corporate changes
B)A monthly report to the SEC of insider stock activity by officers and directors as well as large stockholders owning more than 5% of the companies shares outstanding
C)An annual report to the SEC providing a company's detailed annual financial statements.While it has the same information as the annual report to stockholders,there is often more detail in the 10K
D)Issued to the SEC any time a significant corporate event occurs such as change of control,bankruptcy,change of officers,etc

Question 65

Which of the following is not a source of economic data published by the government?

A)Economic Indicators
B)Annual Economic Report of the President
C)Financial World
D)All the above are published by the government

Question 66

Thomson Financial also publishes comprehensive financial data on

A)SEC corporate filings
B)Analyst reports for over 30,000 companies worldwide
C)Merger and acquisition activity
D)All of the above

Question 67

The 10Q report is

A)A quarterly report to the Securities Exchange Commission providing financial statements,changes in stockholders,and other significant corporate changes
B)A monthly report to the SEC of insider stock activity by officers and directors as well as large stockholders owning more than 5% of the companies shares outstanding
C)An annual report to the SEC providing a company's detailed annual financial statements.While it has the same information as the annual report to stockholders,there is often more detail in the 10K
D)Issued to the SEC any time a significant corporate event occurs such as change of control,bankruptcy,change of officers,etc

Question 68

This publication could be helpful in identifying companies in the same industry or in writing to request such information as annual reports or product lists:

A)Business Conditions Digest
B)The Million Dollar Directory
C)Barron's
D)None of the above

Question 69

Which journal has both academic and practitioner articles that deal with mainly analytical tools,new laws and regulations,and financial analysis?

A)Financial Analysts Journal
B)Journal of Finance
C)Journal of Financial Economics
D)Journal of Financial and Quantitative Analysis

Question 70

The primary advantage of using Compustat over using the S&P manuals is that Compustat

A)Is faster
B)Covers more companies and more industries
C)Carries much more financial data
D)More than one of the above