Chapter 21

Checking Out the Analyst–Corporation Connection

In This Chapter

arrow Looking at the various kinds of analysts

arrow Exploring the bond-rating agencies

arrow Understanding stock ratings

arrow Getting key information from analysts

Financial analysts regularly get into the act not by talking companies through their mother issues, but by developing rankings that reflect a company's value.

The way analysts view a company can make or break the value of its stock. If a well-respected analyst writes a negative report after seeing a firm's financial reports, its stock price is guaranteed to drop at least temporarily. Red flags analysts raise help you find crucial details to look for when reading a company's financial reports.

This chapter reviews the types of analysts and the ways a company feeds financial information to them.

Typecasting the Analysts

Analysts, many of whom have completed a grueling testing process that takes at least three years to get the designation Chartered Financial Analyst, serve different roles for different people:

  • For large investment groups (such as mutual or pension funds): ...

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