This preview shows page 1. Sign up to view the full content.
Unformatted text preview: expenses, and earnings over a particular period of time Technical analysis: the valuation of stocks based on historical price patterns Fundamental analysis: the valuation of stocks based on an examination of fundamental characteristics such as revenue or earnings, or the sensitivity of the firms performance to economic conditions Focus on Ethics: Accounting fraud Many firms recently used fraudulent financial statements Motivation for fraud Manager compensation Short-term focus The Enron and WorldCom scandals Over-reported revenue and under-reported expenses Many stockholders lost their entire investment Preventing future accounting fraud Use independent auditor New rules from Security and Exchange Commission...
View Full Document
- Spring '12