Practicing Success
What is the main interest of investors in the financial statement analysis of big companies? |
Interested in the firm"s capital structure to ascertain its influences on firm"s earning and risk They also evaluate the efficiency of the management and determine whether a change is needed or not. To decide whether to buy, sell or hold the shares All of the Above |
To decide whether to buy, sell or hold the shares |
Investors, who have invested their money in the firm’s shares, are interested about the firm’s earnings. As such, they concentrate on the analysis of the firm’s present and future profitability. They are also interested in the firm’s capital structure to ascertain its influences on firm’s earning and risk. They also evaluate the efficiency of the management and determine whether a change is needed or not. However, in some large companies, the shareholders’ interest is limited to decide whether to buy, sell or hold the shares. |