DESCRIBING FUNDAMENTAL ANALYSIS
Fundamental Analysis is about analyzing the company based on its important key aspects which are known as its fundamentals. Analysis which is purely based on fundamentals is mainly for making long-term investments in the equity market (stock market. Long-term investment can be of several months or for a year. In the short term, there are speculative aspects present. It is expected that stock takes a little time to move towards its intrinsic value. Due to the speculative practices and psychological aspects, technical analysis considers the trends, patterns, indicator and pattern recurring. Trades or investment taken based on technical analysis is part of short-term investment. Fundamentals of a company can be decided by looking at the factor which is both internal and external, factor which includes capital structure, management, labor, tax rates, rules and regulations, foreign investors etc. Fundamentals can be classified into 2 categories: Qualitative factors The ab...