This document outlines various sources of investment information, including the internet, financial press, wall street research, and careers in investments. It discusses how the internet has revolutionized access to real-time stock quotes, company filings, research reports, and message boards. Traditional sources of information like newspapers, magazines, and analyst reports are also summarized. A range of investment professional careers are described such as stock brokers, analysts, portfolio managers, financial planners, and investment bankers.

1. Chapter 2
Sources of Investment
Information

2. CHAPTER 2 OUTLINE
2.1 Ways of Wall Street
2.2 Internet Revolution
2.3 Investment Information on the Internet
2.4 Financial Press
2.5 Wall Street Research
2.6 Investments as a Profession

3. KEY TERMS
 Chartist/Technician  SEC Form 144
 Head and Shoulders  Stock Message Board
 Stock Quotes  Bullish/Bearish
 Real Time  Stock Broker
 EDGAR  Security Analyst
 Ticker Symbol  Portfolio Managers
 10Q Report  Certified Investment
 10K Report Planner
 Proxy Statements  Investment Banker

4. Ways of Wall Street
 Caveat Emptor (Let the
Buyer Beware)
 “Where Are the
Customers’ Yachts?”
 Neither the Advice nor the
Wisdom on Wall Street is free

5. WHAT DID THEY SAY??
Wall Street & Internet Jargon
 Trader Terms
 Internet Terms
 Technician’s Terms
 Financial and Investing Glossaries on the Internet:
 <http://www.matisse.net/files/glossary.html>
 <http://www.siliconinvestor.com/misc/glossary/alist.html >

6. TECHNICIANS or
CHARTISTS
 Pick stocks based on patterns of
past price and volume data--e.g.,
“head and shoulders”
formation--bearish indicator
 Technical trends can move
markets in short term, but
fundamentals count in longer
term
 Tend to look at day-to-day stock
movements, often with 20/20
hindsight

7. Internet Revolution
 Widespread  Makes financial markets
dissemination of more democratic
information
 Reduces information-
 Two-way gathering costs
communication
 Can be fertile space for
 Cheaper and more stock price manipulation
timely than print sources and fraud

8. THE INTERNET
So Powerful, It Brings Down Walls
With a click of the mouse:
 consumer news
 attitudes
 impressions
 ideas
 variety of new products and services
Enemy of despots and dictators

9. E-commerce and the
Internet
Tool for Consumers Tool for Companies
Ready information is  Reduce prices
enemy of high prices
and high profit margins  Get closer to customers
as consumers shop via
 Find out how to meet and
the ‘net
exceed customer needs

10. Financial Information
on the Internet
<http://cbs.marketwatch.com> <http://www.dailystocks.com>
 Stock Quotes in Real Time  Quotes
 Volume Information  Charts
 Financial Data on:  News
 SEC Filings
 Companies
 Stock Research Reports
 Industries
 Earnings Estimates
 U.S. Economy
 Fundamentals
 World events

11. WHO IS EDGAR?
<http://www.edgar-online.com>
 Electronic retrieval analysis for SEC filings
 Free website for gov. reports filed by individual companies
 For-profit company that supplies
investors with SEC reports and filings
 Ticker symbol: unique 2,3,or 4 letter
code for company

12. SEC REQUIRES
 10Q: Quarterly Accounting Proxy statement or annual
Information meeting announcement
 Members of top
 10K: Annual Accounting management
Information  Board of directors
 13D: 5% Ownership  Large investors
Positions  Stock ownership
positions by managers
 Form 144: Intention to Sell  Pay-for-performance
Restricted Stock incentives

13. REAL TIME QUOTES
<http://freerealtime.com>
 Fast-moving markets
 Up-to-the-minute quotes and news
 Free quote information

14. MUTUAL FUND
INFORMATION
<http://www.morningstar.com>
 Morningstar—watchdog
group for mutual fund
industry
 Comprehensive, timely
information and analysis
 Information on sector
funds

15. STOCK MESSAGE
BOARDS
<http://quote.yahoo.com>
 Websites for anonymous individuals to post
information about companies or investments
 Timely information about what other investors are
thinking
 Can be manipulated via misinformation, rumor, and
gossip

16. FINANCIAL PRESS
Financial Newspapers: Financial Periodicals:
 The Wall Street Journal  Barron’s,Business Week
(print & interactive  Forbes
versions)
 Fortune
 Investor’s Business Daily
 Inc.
 New York Times
 Money
 San Francisco Chronicle
 Worth
 USA Today

17. WALL STREET RESEARCH
Analyst Opinion Summaries
 Wall Street trading firms’ opinions
 Detailed information about:
 Companies
 Industries
 Overall Economy
 Global Stock and Bond Markets
 Buy/sell recommendations
 Bullish Consensus
 Bearish Sentiment

18. WALL STREET RESEARCH
Company Reports
 Company Reports
 Industry Reports
 U.S. Market Outlook
 Global Outlooks

19. Investments As a Profession
Financial Job Market Overview
 Employment opportunities in financial services expected to
grow rapidly
 Amount of financial sophistication demanded of finance
specialists and nonspecialists expected to rise
 Corporate Treasurers/CFOs
 Personnel/Human Resources
 Boundaries between investment and financial instruments
continue to blur--> more account executives in
 Commercial banks
 savings institutions
 insurance carriers
 real estate companies

20. CAREER OPPORTUNITIES
Stock Brokers & Investment Managers
 Stock Brokerage: financial agents who act as
go-betweens for individual buyers and sellers
 Investment Management
 Security Analysts: specialists who identify
investment opportunities for individuals
 Portfolio Managers: manage investments for
individuals and institutions

21. CAREER OPPORTUNITIES
Financial Planners
 Help individuals identify and meet financial goals
 Certified Financial Planners: must pass challenging exams
from College of Financial Planning--equivalent to CPA
 financial plan processing and insurance
 investment planning
 income tax planning
 retirement planning/employee benefits
 estate planning

22. CAREER OPPORTUNITIES
Investment Banking
 Help corporate clients meet
financial needs, such as
issuing stocks or bonds
 Arrange to sell new securities
to general public
 Arrange mergers and
acquisitions