Know The Market(Session-10)
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Fundamental Analysis- Fundamental analysis is one of the most popular method of stock analysis. You can choose and evaluate the company through its earning and balance sheet. Essence of fundamental analysis is to find out as much you can about the company to decide whether it is worthwhile investment compared to other stocks. It tries to estimate the value of stock through the analysis of various factors such as the management, financials,economy and industry in which the company operates etc. Approaches to Fundamental Analysis- There are two approaches of fundamental analysis- Top Down Approach Bottom Up Approach In top down approach we must try to understand the economy. Then we make shortlist about the industry, which industry was exactly grow. Then identify the companies based on the industry. In bottom up approach the fundamental analysis is based on the company specific. Q- What is top down approach? Ans- Top Down investor looks at macro economic variable like GDP, inflation, In