The Fundamentals of Fundamentals

Category: Entertainment

Presentation Description

No description available.


Presentation Transcript

The Fundamentals of Fundamentals :

The Fundamentals of Fundamentals In the broadest terms, fundamental analysis involves looking at any data, besides the trading patterns of the stock itself, that can be expected to impact the price or perceived value of a stock. As the name implies, it means getting down to basics. Unlike its cousin technical analysis , which focuses only on the trading and price history of a stock, fundamental analysis focuses on creating a portrait of a company, identifying the intrinsic, or fundamental, value of its shares and buying or selling the stock based on that information.

Some of the indicators commonly used to assess company fundamentals include: :

Some of the indicators commonly used to assess company fundamentals include: cash flow return on assets conservative gearing history of profit retention for funding future growth soundness of capital management for the maximization of shareholder earnings and returns Think of the stock market as a shopping mall: stocks are the items for sale in the retail outlets. Technical analysts will ignore the goods for sale. Instead, they will keep an eye on the crowds as a guide for what to buy. So, if a technical analyst notices shoppers congregating inside a computer shop, he or she will try to buy as many PCs as possible, betting that the growing demand will push PC prices higher.


WHAT IS STOCK MARKET? A stock market / share market is a public market (a loose network of economic transactions not a physical facility or discrete entity) for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.


WHAT IS STOCK BROKER? The broker is best described as a "middle man" or "order taker." Brokers match buyers to sellers and earn commissions for their services. The broker does not own the asset at any time. Stockbrokers will fill orders to buy or sell investments for clients and will sometimes offer advisory services.

authorStream Live Help