EQUITY RESEARCH AND FINANCIAL ANALYSIS

Equity research and financial analysis

Equity research and financial analysis

Introduction

One of the challenges facing businesses today is how to integrate information from multiple sources, in concise reports and analysis to facilitate decision-making, turning information into suitable to survive in highly competitive world actions. The integration and management of information is known today as business intelligence business intelligence, which has led to the development of computer systems that integrate and cross data from multiple databases, in various ways, in a relatively simple manner. The problem for companies today is not access to information; most have more and more information about their customers, their buying habits, the amounts they spend, their ages and tastes. They also feature a sea of statistics on their own production processes, productivity, failures of their machines, the cost of each part, each screw, the time it takes to repair, etc. The point is, rather, how to digest the vast amount of data without indigestion, like turn it into useful information, how to interpret correctly to take advantage of them.

The financial analyst has the starring role when it comes to untangle the web of data, so it is increasingly important to be skilled in the use of multiple systems and databases. Not enough to communicate well, having financial and accounting knowledge, one must know also extract the right information from the databases; deftly handle information from different sources. The good news is that many systems are implementing similar interfaces to Excel, which undoubtedly is the favourite tool of financial analysts.

An inexperienced investor in the stock market on the internet a report of a known financial analyst, where plasma predictions positive about the future values ??of a company and makes recommendations positive investment. Relying on this information and qualifying expert, the investor makes a transaction using all recommended savings, but a few days after the company goes bankrupt. Is responsible analyst with the investor for their economic loss? Is overall responsibility for the professional analyst information provided or simply it is not legal advice or tips transcendence? Can be certain when the investor makes a decision based on the information provided by the analyst? Financial and accounting major crisis and corporate scandals in the United States and Europe in early 2000, Enron, WorldCom, Parmalat, have drawn attention to the importance trusted third parties or gatekeepers in the market and caused the reaction instantly governments to regulate its activity and determine their responsibilities. Regulatory system, he said, by the way, is currently in challenged by the incredible Ponzi scheme Madoff Investment Securities, that came to light in late 2008.

Discussion

These trusted third parties highlights investment analysts, Specialising is dark and professional activity is basically investing and collection of information from listed companies to analyze, process it and turn it into written reports generally contain predictions company profits analyzed price estimates and objective investment recommendations. That is, the end product of the work is also information, a product with special features which can lead to unreasonable liability ...