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

Info iconThis 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
Background 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 stocks 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 companys stock is discounted and reflected in the share price. Technical analysis has a traditional approach of charting....
View Full Document

This note was uploaded on 08/21/2010 for the course FIN FIN370 taught by Professor Mr.garcia during the Fall '09 term at DeVry Long Beach.

Ask a homework question - tutors are online