We worked extremely hard to earn money. However, the best investment information sources for your hard-earned money is an equally important and challenging tasks. Even though an investor has many options, choosing the best one is never easy for experienced investors. And, if the investor is a newcomer to the investing world, he must maintain a broad mind about the information that may assist him in making the right investment decision.
This is something that even the most senior investors would agree on. As a result, the investor must be aware of all the sources of investment information that can assist him in making investment process steps. As well as the degree of reliance on those sources of investment information and the truthfulness of the data.
If you want to invest internationally, choose investments registered with the Securities and Exchange Commission (SEC). Because the SEC regulates foreign stocks and other assets traded on exchanges, foreign companies must file reports.
When foreign companies register with the SEC, you can use the financial reports they file, reputable analyst reports, and data from company websites to help you decide whether an international investment is suitable for your portfolio. This article will try to showcase key and well-known sources of investment information.
Investment Information Sources
There are various investment information sources:
1. Filings with the SEC
The Securities and Exchange Commission (SEC) in the United States mandates all publicly traded companies to file financial information with it. Accordingly, these filings contain all of a public company’s news.
2. Financial Reports
The balance sheets are a type of financial statement that summarises a company’s assets, liabilities, and equity. The income statement is a report that includes a breakdown of revenues and expenses. Finally, the cash flow statement explains how a company generates cash through operations, investing, and debt.
These statements may have different names depending on where they are located. Many countries, for example, adhere to international financial reporting standards, while others may have their own.
3. Annual Reports and Financial Information
This source of investment information includes the company’s financial statements, Balance Sheet, Profit & Loss Statement, and more information about insider transactions, plans, information about Management, their opinion and guidance about the company’s working and prospects, and much more.
In addition, companies must file annual reports (10-K), quarterly reports (10-Q), current event reports (8-K), reports on insider trading (forms 3, 4, and 5), and institutional investment reports (Schedule 13D and 13G). In addition, the director’s report and the management discussion and analysis (MD&A) sections of the annual report are excellent sources of information on the company and industry.
As well as Management’s plans for expansion, diversification, technological change, capital, organizational structural changes, and so on.
Foreign firms that list on the NYSE must also provide the SEC with financial information. All SEC information is easily accessible via the EDGAR database. In addition, numerous business websites offer easy access to such information.
4. Reports from Analysts
Securities analysts are also helpful. While sell-side analysts can sometimes be biased, they provide valuable information in one location. Again, this simplifies your research significantly if you’re investing internationally.
Because they are typically not biased, buy-side analysts are an even better source of facts. The only problem is that their research isn’t as widely disseminated.
Analyst reports are available on websites such as Morningstar and Yahoo Finance. You could also contact your broker because they have a wealth of information on their websites, newsletters, and mailouts.
5. Document Offer
Aside from these sources, another document that could help investors learn about the company is its offer documents. Every company that goes public must file an offer document with the SEC. Along with facts and figures about the company and its promoters, this document contains a wealth of information about the company’s industry.
Overall, the SEC information provides comprehensive information on any public company. Furthermore, SEC information is highly reliable because it comes directly from the company. However, there is one drawback to using SEC data. And it is that you must swim through a lot of information because these reports are several pages long.
6. Website of the Company
Again, because it comes directly from the company, this is a very reliable source of investment information. A company’s website is likely to have all of the company’s information, including financial and non-financial data. For example, financial statements, press releases, product or service information, blogs, presentations, and other materials will be available on the company’s website.
Furthermore, reviewing financial information on a company’s website is much easier than reviewing SEC filings. This is because the website may provide investors with an overview or a snapshot of the critical numbers.
Presentations are commonly found on a company’s website and are counted among the best sources of investment information. These presentations provide an overview of past performance and may include quarterly or yearly projections. These presentations are easily accessible by browsing the investor relations section of the website.
8. Press Releases or News
Company news and press releases can be a gold mine of sources of investment information, financial performance, and upcoming events.
9. Social Media Platforms
Social media is now more dominant than print media. Finance, investments, and savings are also available on social media. As a result, many investment ideas, analyses, information, and action points can be found on social media giants such as Twitter, Reddit, and Telegram. In addition, most social media platforms have investment-focused groups. These communities could be a source of investment information.
These are among the best sources of investment information for supporting investment decisions. It is worth noting that there is no single best source; instead, all of the above references are more or less vitally valuable. Each head of investment information is helpful in its own right and can assist the investor in some way. With the advancement in technology, all this information can now be accessed on the go using the latest smartphones.
The Best Investment Information Sources – FAQs
What best investment information sources should an individual consider before investing?
Ans. No single investment information sources give you a clear image of the investment area. You can consider revising.
- Filings with the SEC
- Financial Reports
- Annual Reports and Financial Information
- Reports from Analysts
- Document Offer
- Website of the Company
- Press Releases or News
- Social Media Platforms
Can the website of the company sometimes mislead the investor?
Ans. Yes, sometimes the website of the company misleads the investor as the websites are run and governed by the company itself. So, there is a chance that the company can publish only those topics which are critical attractions for their investors and not publish facts that make investors’ minds doubtful.