What is Fundamental Analysis?
The basic analysis method is based on the sensitive factors that affect the price changes of securities, and analyzes and studies the general law of price changes in the securities market, providing an analytical method for investors to make correct decisions. There are three main levels: one is the macro socio-economic influence factor; the other is the industry (or industry) influence factor; the third is the company influence factor. Three types of factors affecting the price of securities constitute the three parts of the basic analysis of securities investment, namely macroeconomic analysis, industry analysis, and micro-enterprise (company) analysis. [1]
Basic analysis
- Use commodity supply and demand theory and information for price analysis and forecasting.
- in
- Basic analysis is mainly applicable to the following aspects: (1) relatively long-period securities price prediction; (2) relatively mature securities markets; (3) applicable to areas where forecast accuracy is not high.