Prospectus

Prospectus

Project I

Finance

Marlon Olmos

2/4/15

The basis for investing in a company require a person and company to review financial information a gain a clear understanding of a companies history, management biographies, financial statements, best and worst case scenarios of company performance and any other information that will help investors make an informed decision about the investment. The idea is to protect the investor from downturns in one market by providing upswings in value with other holdings.

I have chosen to review Alcoa Inc. who serves eight major markets which are; Automotive, Aerospace, building & construction, packaging, consumer electronics, commercial transportation, oil & gas and last but not least defense. Alcoa is the worlds leading alumina supplier-the only global supplier with smelter and chemical grade alumina. For over 125 years Alcoa Inc. has set new standards for break-through technology, strengthening communities and growing sustainably. From the world’s lightest plane to the most fuel-efficient cars to the sleekest mobile phones, Alcoa innovations accelerate advancement in key markets. Alcoa serves as a model for diversification into different holdings to protect its investors from any down turn in any market. The link below will direct you to the 10-k report filed for the year ending December 31, 2013.

http://www.sec.gov/Archives/edgar/data/4281/000119312514051516/d634164d10k.htm

After reviewing Alcoa’s balance sheet it is clear that Alcoa is able to pay its short-term debt and have sufficient resources to expand or strengthen any of its holding. Its wide range of holdings is definitely a sign of strength and can cover any losses from one holding with another. Two key ratios are working capital (Current Assets – Current Liabilities) and Current Ratio (Current Assets / Current liabilities).

Working Capital - (Current Assets – Current Liabilities)

Current Assets = 6,969,000.00 – Current Liabilities=...