Investment decisions have to be based on the investigation of accessible information so that they mirror the likely performance and risks linked with the investment.
Mostly the choices are subjective by behavioural biases in the decision maker, which leads to less than most favourable choices being made.
Thinking behind proponents of this philosophy is that securities prices go away from their fair values either upside or downside as a result of the panic and greed of the market participants.
What are the objectives of Economic Analysis?
Principles of Microeconomics and Macroeconomics
Key economic variables for carrying out fundamental analysis
Origins of Information/data of economic variable for carrying out economic analysis.
Economics is the learning of how people make preference under conditions of shortage and the impact of those options for people at an individual level and society at macro level.
Economic analysis of human behaviour begins with the supposition that people are sensible - they have well-defined goals and try to achieve them as best they can.
In trying to achieve their goals, people in general face trade-offs: resources both material and human are limited and making one option would usually mean letting go of something else.
It entails prioritization of needs and wants and allotment of limited resources to the desired goals.
Even though there are several branches of economic study, microeconomics and macroeconomics are the most well-known.
As their names indicate, microeconomics is the study of economics on a smaller (micro), more comprehensiverange and macroeconomics is the study of economics on a larger (macro), broader scale.
What are thebasic Principles of Microeconomics?
Microeconomics is the study of the behaviour of individuals and their choices on what to buy and consume based on established prices which in turn signals where the economy has to direct its productive activities.
The values of Microeconomics are that prices and production levels of goods and services in an economy are driven by consumer demand.
For that reason, Microeconomics aims on the drivers of decision making, as well as the ways in which individuals’ decision affect the overall supply and demand and supply of pickygoods and services, in an economy, and in turn their worth.
Microeconomics also deals with the "theory of the firm." Broadening the notion of individuals, here it deals with how firms take on different approach to raise their profits.
It deals with the decision making process at the level of inputs, outputs, prices, production levels, profits and losses of individual firms.
What are the importance and uses of microeconomics?
Microeconomics deals with the understanding and working of a free market economy.
Microeconomics helps us understand how the prices of the products and services get determined in an economy, how individuals and firm behave with regard to those prices and how goods and services in an economy are distributed among its various participants.