Monday, January 7, 2008

COMPANY-SPECIFIC INFORMATION, Identify the companies to be analyzed..

The first task is to identify the companies to be analyzed. This may appear uncomplicated in dealing with a small population of companies, but it is one of the most important!. At least three items are required for the identification of a company. These are :

Company's name

The names of companies can often be confusing. To simplify operation of a database, a company identification number is needed in addition to names and descriptions. Each company identification number should be unique and the identification of securities issued by the company should be related to that number or codes.

Industry classification

A company's industry classification should be based on the major product or services it provides. Many other classification systems, established by various organizations, are used in other countries.

History & background.

Identification of a company must also include its history and background. The following items constitute this component: Site of incorporation, Location of home office and major operating activities, Initial Public Offering (IPO) date, Major merger and acquisition activities.

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