Wk 4, DQ 3 - movements of securities or commodities The aim...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Discussion Question #3 Please reply to this thread by or before Sunday, Day 6 with your answers! What is the difference between Technical Analysis and Fundamental analysis when valuing a company’s stock? A basic difference between technical and fundamental analysis is that the results from a technical analysis will provide you with the knowledge of when to buy and fundamental analysis results will advise you what to buy. Fundamental analysis requires more information that technical analysis. For example, fundamental analysis is based upon the analysis of financial statements. Technical analysis is more concerned with identifying the patterns in price movements from the past. Fundamental analysis is generally applied to the study of economics and the price
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: movements of securities or commodities. The aim of fundamental analysis to quantify the current stock’s value is by obtaining data pertaining to general industry outlook, the overall market conditions, the financial strength of corporate, dividends, historical sales patterns, and market share. With all of this data, a future value is assigned to the stock using interpretation and projection. Technical analysis is more concerned with activity in market repeats, the trends which sometimes appear in share price moves, and the relevance to the value of a company’s stock is discounted and reflected in the share price. Technical analysis has a traditional approach of charting....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern