investing guide

Stock Market Fundamental Analysis

fundamental analysis

When you hear the term stock market fundamental analysis in relation to trading stocks you are talking about the underlying variables within a corporation.

Investors who rely mostly on fundamental analysis when buying stocks really care about how the corporation is being run and the direction it is headed in for the long term.

It is also how an investor figures out if the current asking price of the corporation is a fair value or if it is over-priced or under-priced. This is determined by studying income statements, financial reports, and annual reports. It can also take into account a corporations competition and the current management of the corporation.

Fundamental analysis is probably one of the trickier things for a new investor to really get a grasp on, and also one of the more boring aspects of investing.