Chapter One
Sources of Information
Nearly every investment banking activity requires, in one way or another, the analysis of data. The importance of collecting meaningful, accurate data cannot be overemphasized. The best financial software and valuation models in the world cannot provide reliable guidance without it.
The following are some of the sources out there for information on companies and their finances. In this chapter, we go into detail about some of the sources that are most likely to be relevant to the exam.
• The SEC. The main source of information about public companies is EDGAR—the Securities and Exchange Commission’s Electronic Data Gathering, Analysis, and Retrieval system. All public companies must file a wide range of reports with the SEC, including detailed financial statements, and virtually all of these reports and their exhibits are available free of charge on EDGAR.
• Other government websites. The government is heavily involved in, among other things, data collection and dissemination. Government websites provide details about the economy as a whole, ranging from the latest economic indicators to a list of Standard Industrial Classification (SIC) codes.
• Company