Stock Advisor Investment Research Methods

Question 1

What is a '10-K' report filed with the SEC?

Accepted Answer

A company's comprehensive annual report including audited financials

Answer

The 10-K is a comprehensive annual report filed with the SEC that includes audited financial statements, business overview, risk factors, and management discussion.

Question 2

What does 'due diligence' mean in the context of stock research?

Accepted Answer

Thoroughly investigating a company before investing

Answer

Due diligence refers to the comprehensive research and analysis an investor conducts before making an investment decision, including reviewing financials, management, competition, and risks.

Question 3

What is a 'proxy statement' (DEF 14A) filed with the SEC?

Accepted Answer

A document providing information about matters to be voted on at a shareholder meeting

Answer

A proxy statement provides shareholders with information about issues to be voted on at the annual meeting, including executive compensation, board elections, and major proposals.

Question 4

What is an 'earnings call' in the context of investment research?

Accepted Answer

A quarterly conference call where management discusses financial results and outlook with analysts

Answer

Earnings calls are quarterly conference calls where company executives present financial results and guidance, and answer questions from analysts and investors.

Question 5

What is 'consensus estimate' in stock research?

Accepted Answer

The average of all analyst earnings or revenue forecasts for a company

Answer

The consensus estimate is the average of earnings or revenue forecasts made by multiple analysts covering a stock, used as a benchmark for judging actual results.

Stock Advisor Practice Test

Stock Advisor Practice Test

Stock Advisor Investment Research Methods