Reading Financial Information 

Reading financial information in business publications or the newspaper may be helpful for you in making investment decisions. But how does one read the financial news? What info is important to help you with your investments.General news- Reading world and domestic news stories provides investors with information on political, geographical as well as broad economic tales that are important in decision making. General merger information and other company data will also be included and though the market as probably already priced this news into the share price newspaper results may provide a perspective to the story that you may not have considered.It is important to remember that it is not a surety that the more detail you read the more money you might make investing. In the book Gut Feelings, author Gerd Gigerenzer found that on the contrary. The more you know about the details of a stock or company the less you may make in investments. He cites a phenomenon that he calls ‘The benefits of simplicity’ which he states shows that ‘simple rules of thumb can predict complex phenomena as well as or better than complex rules do.’ Author Malcom Gladwell builds on this to show in his book, Tipping Point, that a few clues- if they are the pertinent ones- will be as strong an, or even a better, indicator of a complex truth as being buried in data.Company information- The most obvious bit of company news in a paper or online is the company stock price.In the columns of information will be the previous day’s stock price. Other columns may show the highest or lowest price for the previous 52 weeks, the percentage difference between those highs or lows and the previous days price and perhaps even the Price Earnings – or P/E- ratio. The P/E ratio is found by dividing the price per share to the company’s earnings per share and is a measure of how much each share is worth as a function of its company’s net profits.Marion R. Syversen, MBA – [email protected]com Check out our website that includes weekly streaming Voted Bangor’s Best Financial Planning Firm 2009 by Market Surveys of AmericaIn compliance with requirements from FINRA, all e-mail sent via the WSFG domain will be subject to review and archiving by Wall Street Financial Group, Inc. Email management, archiving & monitoring technology powered by Smarsh, Inc. Disclosure:Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Norumbega Financial, Wall Street Financial Group, Inc. and all other individuals listed areseparate entities, independently owned and operated. Information is for educational purposes only.