frl 315 exam guid 1 - Chapter 1 Interpreting Financial...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 1: Interpreting Financial News “Interpreting Financial News” tests your ability to comprehend common statements made by Wall Street analysts and portfolio managers who participate in the financial markets. Interpret the following statements made by Wall Street analysts and portfolio managers. a. “The price of IBM will not be affected by the announcement that its earnings have increased as expected.” The earnings level was anticipated by investors, so that IBM’s stock price already reflected this anticipation. b. “The lending operations at Bank America should benefit from strong economic growth.” High economic growth encourages expansion by firms, which results in a strong demand for loans provided by Bank America. c. “The brokerage and underwriting performance at Merrill Lynch should benefit from strong economic growth.” High economic growth may result in a large volume of stock transactions in which Merrill Lynch may serve as a broker. Also, Merrill Lynch underwriters new securities
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

frl 315 exam guid 1 - Chapter 1 Interpreting Financial...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online