Money management resources can be used by professionals and individuals to help make investment decisions in the financial markets. Resources could be public filings that are available on a regulator's website. Such information could include financial statements issued by publicly traded companies. Other resources might be proprietary research reports issued by financial analysts. Some governmental agencies also provide economic reports that provide clarity on the investment opportunity within a specific country.
Stock analysis is one of the different types of money management resources. An investor could form his or her own analysis with the use of some financial tools, including charts illustrating historical price performance. Stock charts could be helpful for chronicling price patterns and also determining the range in which financial securities have traded over certain periods of time. Common durations for stock charting are three months, six months, and one year's time.
Income statements are financial statements that reveal a company's profits or losses. Professionals and individual investors alike can use these money management resources to determine whether or not a business is on track to meet future goals. This is often useful when deciding whether or not a company represents a sound investment choice and what certain risks associated with the financial security may be. The data revealed in a financial statement might suggest that it's time to sell a stock investment, which is one of the components of money management.
Professional analysts who perform financial analysis serve as money management resources to the markets. These individuals study performance in stock and bond securities to assign certain profit and sales expectations to the business. This is a helpful tool for money management because if a company does not meet an analysts expectation, professionals and individual investors can become aware of some underlying challenge at the business. An analyst's rating on a stock or bond provides insight on potential opportunities. Analysts also issue regional economic reports, which can offer money managers further perspective about gaining exposure to overseas economies.
Economic indicators reveal how fast an economy is growing or contracting. Professionals might use these money management resources, such as the rate of unemployment in a region or the direction in which consumer prices are trending, to assess the condition of the economy. In doing so, money managers can determine the prospects for investing in a certain industry or region. If, for instance, economic indicators point towards a slowing economy, it could be a predictor for declining corporate profits, which can suppress stock prices.
