Meaning FUNDAMENTAL ANALYSIS: Security analysis that seeks to detect misvalued securities through an analysis of the firm's business prospects. Research often focuses on earnings, dividend prospects, expectations for future interest rates, and risk evaluation of the firm. Antithesis of technical analysis. In macroeconomic analysis, information such as interest rates, GNP, inflation, unemployment, and inventories is used to predict the direction of the economy, and therefore thestock market. In microeconomic analysis, information such as balance sheet, income statement, products, management, and other market items is used to forecast a company's imminent success or failure, and hence the future price action of the stock
More terms such as Fundamental analysis in Dictionary F.
- Definition Finance Company:
- Examples A company whose business and primary function is to make loans to individuals, while not receiving deposits like a bank fundamental analysis definition.
- Definition Fluctuation:
- Examples A price or interest rate change fundamental analysis explain.
- Definition Forward Rate:
- Examples A projection of future interest rates calculated from either spot rates or the yield curve fundamental analysis what is.
- Definition First In, First Out (FIFO):
- Examples An accounting method for valuing the cost of goods sold that uses the cost of the oldest item in inventory first fundamental analysis meaning.
- Definition Flat Scale:
- Examples The pattern for new issues where shorter- and longer-term yields display very little difference over the bond's maturity range fundamental analysis abbreviation.
