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Fundamental Analysis

Forex-Fundamental-AnalysisFundamental analysis is a types of stock analysis which focuses on studying company fundamentals while investing in its stocks.This method is totally opposite to the technical analysis,which is focused on studying historical prices rather than company fundamentals.Fundamental analysts gives importance to the variables such as financial performance,market competition and the state of the overall economy etc.

 

 

Fundamental analysts  believes that every stock is correctly priced in the long run,even if it is wrongly priced in the short run.So investors can easily benefit in the long run by investing in these stocks.But stock investor should know the real value or intrinsic value of the stock before investing in these undervalued stocks.This type of analysis method is best suited to the value investors,who also believe in these types of concepts.

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About Emaad Qureshi