David Eghbali Financial Statements Part One .pdf
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David Eghbali Financial Statements - Part One
The purpose of this article is to help you understand financial statements, no matter what level
of schooling, you have had. You might have heard a neighbor rave about making money on the
stock exchange. Naturally, you want a "piece of the pie." Financial expert David Eghbali has
taught me how to read financial statements and choose between different corporate stocks for
my portfolio. He uses regular language to take the mystery out of the corporate financial
At first, it can be scary to try to understand all of the jargon found on a financial statement.
Somehow, I know that the figures all mean something, but it is still Greek to me. I am not a
genius with a Ph.D in economics from the University of Cambridge. I just wanted to find a good
corporate stock paying me some healthy dividends. People kept saying that I should save for
retirement - finally I took their advice.
Why is corporate reporting necessary?
David Eghbali has explained that a healthy capitalistic system requires that the macroeconomic
concept of "perfect information" be established. The theory of "perfect information" requires
that all parties are given the same information at the same time. David Eghbali said that this is
why "insider trading" is a crime. With "insider trading," information is only given to the few, not
Public Traded Companies Share Information in Financial Statements
I learned that there are different types of financial statement. David Eghbali told me that there
are annual reports, balance sheets, income statements and more. Shareholders might be
located all around the world and these public financial statements ensure that all individuals
will have the same access to essential information.
Who Reads Financial Statements?
Governments, businesses, banks, pension funds, professors, analysts, reporters, shareholders
and investors all view financial statements, according to David Eghbali. Competitors might
wonder how others have fared. Financial institutions will see how the entire industry is doing.
Shareholders might try to calculate how high their dividend will be.
When problems arise, financial statements are reviewed. David Eghbali suggested that a "paper
trail" could be established by reading these corporate documents; these records help
investigators find where the money went.
Full info at: http://www.davideghbali.com/understanding-financial-statements-david-eghbali-part-one