What is Fundamental Anlaysis?
by PRASHANT SHAH -
With more technological access, a large number of people are investing in stocks. Investment in shares can be very profitable if you conduct proper due diligence of the security before investing. There are two types of analysis that you can do before trading in stocks. These are: 1. Technical stock analysis 2. Fundamental stock analysis Technical stock ... Read more
Methods for Financial Statement Analysis
by PRASHANT SHAH -
FINANCIAL STATEMENT ANALYSIS Financial statement analysis is the process of analysing a company’s financial statements for decision-making purposes. External stakeholders use it to understand the overall health of an organization and to evaluate financial performance and business value. Internal constituents use it as a monitoring tool for managing the finances. Analysts apply several methods in judging the ... Read more
What Is Sector Analysis?
by PRASHANT SHAH -
What Is Sector Analysis? We all know that a well-diversified portfolio is the key to building a successful stock portfolio. The diversification should be across sectors and market capitalizations. If we are looking at picking stocks from different sectors, we need to understand sectors from a stock-picking perspective. The objective of this module is just ... Read more
Ratio Analysis: Definition and Types
by PRASHANT SHAH -
Ratio Analysis Ratio analysis is a quantitative method of gaining insight into a company’s liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis. KEY TAKEAWAYS Investors and analysts employ ratio analysis to evaluate the financial health of companies ... Read more
