Session 3 Forum

Session 3 Forum Answer

Companies issue public financial statements as a form of transparency to current and potential investors, but this weeks’ lectures informed us that these statements do not necessarily reflect the companies’ actual financial health or performance. Therefore, investing to any company always has a risk but the investors may look at the company size, its performance trend and conduct a ratio analysis based on those. Aside from investors, employees who seek employment may also refer to a company’s financial statement as a basis of its performance and stability as a future employer.