Knowledge Center Fundamental Analysis
This belief makes people invest in the share market. A detailed study of the market and shares can make a well-informed investor. A decision through analysis provides knowledge to make a sensible investment.
When it comes to factors of fundamental analysis, it is divided into two aspects,
1. Qualitative factors are management, business innovations, corporate administration, etc.
2. Quantitative factors are competition, customers, financial statements, etc.
An investor enquires to analyze qualitative aspects like brand value and the company's popularity and quantitative factors like the company's assets, revenue, and profits before investing in the share market.
This study determines the factors affecting the company's business. An investor will not invest solely depending on the price. The investor can check the actual value and the company's stock market value. Fundamental analysis helps the investor to decide to invest in the equity market.
Profits maximization after determining the actual value of a stock, the investor will know to buy the shares at a lower or higher price, and hence the risk of loss is decreased, and profits are increased.
Decision on investments: Through h this analysis, the investor gets an idea of company growth, performance, and other aspects of investment that can be made confidently. An investment can't be made in vain; fundamental analysis helps find the company's actual value and whether it is worth investing in the long term or short term. In simple fundamental analysis help to make a worthy investment in the best shares of the best company.