Thursday, 1 November 2012

Types of Investment Information

Investment information can be divided into 5 types, each concerned with an important aspect of the investment process.

1.  Economic and current event information.

This includes background as well as forecast data related to economic, political, and social trends on a domestic as well as a global scale.  Such information provides a basis for assessing the environment in which decisions are made.

2.  Industry and company information.

This includes background as well as forecast data on specific industries and companies.  Investors use such information to assess the outlook in a given industry or a specific company.  Because of its company orientation, it is most relevant to stock, bond or options investments.

3.  Information on alternative investment vehicles.

This includes background and predictive data for securities other than stocks, bonds, and options, such as mutual funds and futures.

4.  Price information.

This includes current price quotations on certain investment vehicles, particularly securities.  These quotations are commonly accompanied by statistics on the recent price behaviour of the vehicle.

5.  Information on personal investment strategies.

This includes recommendations on investment strategies or specific purchase or sale actions.  In general, this information tends to be educational or analytical rather than descriptive.




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