Investments made in share market is considered as a best source of income. This belief makes people to invest in share market though there are lot risks involved. A clear study on market and shares can make persona well informed investor. A decision through analysis provide a knowledge to make practical and smart investment.
Fundamental analysis for Enrich
Factors of fundamental analysis
When it comes to factors of fundamental analysis it is divided into two aspects,
1. Qualitative factors are management, business innovations, corporate administration etc.
2. Quantitative factors are competition, customers, financial statements etc.
An investor enquires to analysis on qualitative aspects like brand value and the popularity of the company also the quantitative aspects like company’s asset, revenue and profits before investing in the share market.
Benefits of such information
By analyzing these aspects the investor can arrive the real value of the company and its future pricing progress. The factors affecting the company’s business is also determined behind this study an investor will not invest merely depending on the price which may vary. The investor can check the real value and stock market value of a company varies often. Fundamental analysis helps the investor to have a clear knowledge for making a decision to invest in equity market
Profits maximization after the determination of the real value of a stock, investor will know to buy the shares at lower or higher price and hence the risk of loss is decreased and profits are increased.
Decision on investments: since through h this analysis the investor get a idea of company growth , performance and other aspects investment can be made confidently. An investment cant be made in vain, fundamental analysis helps to find the real value of the company and whether it is worth to invest in long term or short term. In simple fundamental analysis help to make a worthy investment in best shares of best company