Fundamental analysis:
bases predictions for future security performance on past performance. | |
includes research on population dynamics. | |
uses very little information. | |
refers to finding out as much information as possible on the firms or governments that issue securities. |
Technical analysis:
bases predictions for future security performance on past performance. | |
includes research on economic growth, industrial performance, or anything that helps investors better understand risk and return. | |
refers to finding out as much information as possible on the firms or governments that issue securities. | |
was very popular historically, but has fallen out of favor. |
1. refers to finding out as much information as possible on the firms or governments that issue securities.
Explanation: Fundamental analysis attempts to evaluate the intrinsic value of a stock by gathering as much information about the firm or the government issuing stocks as possible.
2. bases predictions for future security performance on past performance.
Explanation: In technical analysis, the future performance of a stock is projected on the basis of the past performance of the stock.
Get Answers For Free
Most questions answered within 1 hours.