What drives the stock price? Why do price changes so often?
Stock prices are determined in the marketplace, where seller supply meets buyer demand. But unfortunately, there is no clean equation that tells us exactly how a stock price will behave.
What is fundamental analysis?
Fundamental analysis involves analyzing a company’s financial statements to determine the fair value of the business. This is a method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors.
What is technical analysis?
Technical analysis assumes that a security’s price already reflects all publicly-available information and instead focuses on the statistical analysis of price movements.
What are the Pro and cons of fundamental analysis?
Fundamental analysis examines the health of a company using balance sheet data, revenue projection models and just plain common sense.
Fundamental analysis can be a lengthy, complex process.
still making predictions about the future that may not come true.
What is the input (Data required) to do fundamental / technical analysis?
Data required to do fundamental :- Fundamental analysis examines the health of a company using balance sheet data, revenue projection models and just plain common sense.
Data required technical analysis:- Technical analysis looks at a chart of a stock’s price movements. Analysts look for patterns to determine future movements in the stock. There are hundreds of “indicators” that can help find buy or sell points, or price trends and momentum.
Explain the relationship of news, earning, and analyst report with the stock price?
One has to be smart enough to decode the news and quickly grasp whether it will affect his stocks in anyway and if yes, the degree to which the news can have an impact.
Earning:- No, company earning will not affect the share price.
analyst report:- Sometime.
Why do people avoid penny stocks?
• Most companies offering
