Getting Started in Fundamental Analysis

by Thomsett, Michael C.

• ISBN13: 9780471754466
• ISBN10: 0471754463
• Edition: 1st
• Format: Paperback
• Copyright: 2006-04-21
• Publisher: WILEY

Summary

Most moderate and conservative investors rely on fundamental analysis to identify potential investments. But since accounting is essential to understanding this approach, some investors tend to shy away from it. Getting Started in Fundamental Analysis offers a fresh look at the basics and provides readers the means for identifying viable investments based on financial information. The approach taken in this book includes the traditional financial tests; it then goes beyond those tests to provide realistic assessments of financial information. This vital primer includes an explanation of flaws often found in the accounting industry and audited statements, sources for online financial information, confirmation tests everyone can use, and an explanation of fraud and the need to make core earnings adjustments.Michael C. Thomsett (Port Townsend, WA) is a financial writer who has written more than 60 books on investing, real estate, business, and management topics. He is the author of several Wiley books including J.K. Lasser's Real Estate Investing (0-471-39776-8) and Getting Started in Options (0-471-70712-0), now in its sixth edition. Prior to his writing career, Thomsett was a professional accountant and systems consultant.

Author Biography

Michael C. Thomsett is a financial writer who has written more than sixty books on investing, real estate, business, and management topics. He is the author of several Wiley books, including Getting Started in Rental Income, J.K. Lasser's Real Estate Investing, and six editions of the bestselling Getting Started in Options. Prior to his writing career, Thomsett was a professional accountant and systems consultant. </p>

Table of Contents

Introduction: How Fundamental Are the Fundamentals?	1	(4)
Chapter 1 Financial Statements and What They Reveal	5	(28)
Chapter 2 Basic Stock Market Theories	33	(24)
Chapter 3 The Audited Statement—Flawed but Useful	57	(20)
Chapter 4 Finding Financial Information Online: Step-by-Step Explanations	77	(18)
Chapter 5 How Accurate Are the Numbers?	95	(26)
Chapter 6 Confirmation: The Trend of the Trends	121	(16)
Chapter 7 Balance Sheet Ratios: Making the Analysis	137	(18)
Chapter 8 Income Statement Ratios: Tracking the Profits	155	(18)
Chapter 9 The Popular P/E Ratio and How to Use It	173	(14)
Chapter 10 Using Fundamental—and Technical—Analysis Together	187	(14)
Chapter 11 Indicators That Go beyond the Statements	201	(14)
Glossary	215	(12)
Notes	227	(2)
Index	229