5 Questions
Fundamental analysis is the study of the ______ as a whole, the industry circumstances in which the company operates, and the financial performance of the company to estimate the intrinsic value of its stock
economy
Approaches of Fundamental Analysis: There are two major approaches to fundamental analysis used by fundamentalists to determine the intrinsic value of a stock and compare it to its market value.
Top-Down Approach, Bottom-Up Approach
The Global Economy. The Domestic Macroeconomy. First: The Global Economy. Political issues. Exchange Rate. Second: National Economy. Gross Domestic Product. Employment. Inflation. Interest Rates. Budget Deficit. Sentiment. Fiscal Policy. Monetary Policy. Economic Cycle. Second Step: Industry Analysis. The Industry’s Life Cycle. Third Step: Company Analysis. Types of stocks. Growth Stock. Defensive Stock. Cyclical Stock. Speculative Stock.
First Step: Macroeconomic Analysis.
Fiscal Policy. Monetary Policy. Economic Cycle.
Study Notes
Fundamental Analysis and Macroeconomic and Industry Analysis
- Fundamental analysis studies the economy, industry circumstances, and financial performance of a company to estimate the intrinsic value of its stock.
- Two major approaches to fundamental analysis are the top-down approach and the bottom-up approach.
- The first step in fundamental analysis involves macroeconomic analysis, including the global economy and the domestic macroeconomy.
- The global economy analysis includes political issues and exchange rates.
- National economy analysis considers factors such as gross domestic product, employment, inflation, interest rates, budget deficit, and sentiment.
- Macroeconomic factors like fiscal policy, monetary policy, and economic cycles are important considerations in fundamental analysis.
- The second step in fundamental analysis involves industry analysis, including the industry's life cycle.
- The third step is company analysis, where the performance and financials of the company are evaluated.
- Different types of stocks are considered in fundamental analysis, including growth stocks, defensive stocks, cyclical stocks, and speculative stocks.
Test your knowledge of macroeconomic and industry analysis concepts with this quiz. Explore fundamental analysis approaches, including top-down and bottom-up approaches, and delve into macroeconomic analysis, global economy, domestic macroeconomy, political issues, exchange rates, GDP, and employment. Perfect for students or professionals seeking to enhance their understanding of economic and industry analysis.
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