Answers: Chapter 12 - Evaluating Stocks: Understanding What Companies Do


12.1: True or False. Unlike fundamental analysis, technical analysis focuses on a company's ability to grow and make more money in the future. The answer is False

Fundamental analysis focuses on a company’s ability to grow and make more money in the future, while technical analysis focuses on how stock prices move up and down and how many shares of a company’s stock are bought and sold on a day-to-day basis

 

12.2: Find the stock symbols of the following companies: Yahoo!, PepsiCo Inc., eBay, by using the YahooFinance site or any other site you prefer.

 YHOO (Yahoo!), PEP (PepsiCo Inc.) and EBAY (eBay)

 

12.3: Find the snapshot or summary of The Walt Disney Company by using the MarketWatch site or any other site you prefer. In the MarketWatch site, do the following:

  1. Find the search menu and enter DIS, which is the stock symbol for The Walt Disney Company

  2. You will be taken to the Walt Disney Page -- on that page, you should click a selection labeled "Profile" to get to a Company Description

  3. Click the "expand" button next to the Company Description for the full description for the company.