October 2024
Beginner
272 pages
6h 19m
English
Content preview from How to Read a Financial Report, 10th Edition
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
23BASIC QUESTIONS, BASIC ANSWERS
Some years ago, a women’s investment club invited John (my father who passed away in 2022) to their monthly meeting to speak about financial reports. In my dad’s words, “It was a lot of fun.” These women were a savvy group of investors who pooled their monthly contributions. They invested mainly in common stocks actively traded on the major securities exchanges. Our comments in this chapter apply to public corporations as well as private businesses.
These women investors asked thoughtful questions (of my father), which I share in this chapter, along with a couple of other questions that are important for anyone who invests in stock and debt securities issued by public corporations, or who has an investment in a private business. Other financial statement readers will also find this chapter helpful.
Business investors and lenders should know the answers to certain questions concerning financial statements. I answer these questions from the viewpoint of a typical individual investor, not an institutional investor or a professional investment manager. John’s previous retirement fund (TIAA) manages almost $1.0 trillion in investments. I assume its portfolio managers know the answers to these questions. They’d better!
When You Buy Stock Does the Company Get Your Money?
One point caught my dad quite by surprise, and it’s an important one to understand. At that time, the women were thinking of buying common stock shares of General Electric (GE). ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.