3 + 3-A Basic Approach
Analyzing investments has elements of science and judgment. The science comes from examining
the data and applying financial, accounting, economic and behavioral methods. The judgment
comes forward when knowing oneself and
THE APPLICATION OF ECONOMIC CONCEPTS TO STOCK ANALYSIS
1. Micro-Economics (Impacts on Supply and Demand as regulated by prices and
production). Some ideas that impact the company and industry.
Substitution of factors of production and output (ch
IMPORTANT: TEST ELIGIBLE
The total stock market from 1927 to 2005 had a total return (including dividends) of 10.01% per
annum. The poor performance of stocks over the past 10 years has reduced this average to well
below 10%. As
Securities are in effect legal undertakings that show interests of parties to a transaction, they are
subject to both rights and obligations under common law as well as specific federal and state laws
regulations promulgated hereu
Industry analysis is not an easy or simple matter. However, it is important to understand who the
competition is. A target company cannot be isolated from the industry it does business in.
Further, research has shown that in the range of
THE STRUCTURE OF INTEREST RATES
What factors determine the rates paid?
Below is a somewhat simplistic method of examining the structure of an interest rate. By
this I mean that it is probably useful to an investor, but the average academic economist or