Methodology

Investing Basics

Module 1

What is unsystematic risk?

Test your knowledge

Getting information

Getting information

Being informed when you make investments is an important consideration. If you are not fully aware of what is going on with a particular investment, it may lead to significant losses.

After finding the investments that you are interested in, it is important to assess relevant information about them to see whether they are worthwhile or not.

The most important types of information for an investor include stock chart information, company finances, economic information, analysis etc.

As a new investor, it can seem a bit overwhelming as to how you should find information about your investments. Therefore, the following parts aim to inform you about free and paid ways to obtain information.

Free information

When it comes to finding and using free information to make investment decisions, there are a lot of options available.

Free online resources are vast, but it is best to stick with reputable names. The reason being that there is a lot of misleading or fake information online, which could result in negative investment outcomes.

So, recommended channels would include Yahoo Finance, Google Finance, MarketWatch, Investing.com or the Wall Street Journal.

When it comes to investing in stocks, the absolute best option is to take advantage of the ‘investor relations’ department of a company that you want to invest in.

Companies provide a lot of information to investor for free, so it can be a useful resource to help inform your investment decisions. They are required to offer this information as part of finance regulations.

This would obviously be more useful after you have already found companies that you would like to invest in.

Paid information

As much as there are free ways to obtain information about investments, paid options can often be better. This is because they tend to offer information that is more up to date and more precise.

Paid sources also tend to provide a wider range of information that allows investor to create a more accurate picture of an investment, during their analysis.

Recommended paid provider of information would include the Financial Times and Bloomberg.

It is important to note that paid information can sometimes be incredible expensive. This is particularly the case with Bloomberg, who offers subscriptions that range from $330 a year, up to $24,000 a year. This price varies depending on the type of subscription that you have and how much information is included.

Whether you need paid information or not depends on your investment goals. It is primarily used by professional investors that want to react to new information very quickly. It may not be necessary if you intend to be a more passive investor.

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