Know basics about Fundamental Analysis

Fundamental Analysis:-

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Fundamental Analysis of Stock Market

When a company's stock is purchased on the basis of how STRONG the company is financially internal, then a FUNDAMENTAL ANALYSIS of that company is done.

FUNDAMENTAL ANALYSIS contains closely STUDY about shares and other facts related to shares.

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For example, the shares of the company, who are the people associated with that company, what are those PERSONAL BUSINESS EXPERIENCE and BACKGROUND.

What product does that company make, what is the demand for that product in the future?

What is the potential to make a profit in the company?

When did the company earn how much LOSS or how much PROFIT?

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And how much assets, debts, and CASHFLOW the company has,

In this way, we check in fundamental analysis - how financially strong is the company whose stock we want to buy, and how much that company can grow in the future.

Fundamental analysis is based on the fact that - if the company makes a profit, then the stock price of that company will definitely increase, and hence the fundamental statement of the company is examined in the fundamental analysis.

If the fundamental analysis of the company shows that - the company is not going to gain much in the future, it is too much debt on the company, then on the basis of fundamental analysis, the investor does not buy the shares of such company.

BASIC OF FUNDAMENTAL ANALYSIS

For long term investment in a stock, we have to pay more attention to the FUNDAMENTAL ANALYSIS of the company, so that the company gives us good profit in the long term by overtaking short term fluctuations in the market.

And before FUNDAMENTAL ANALYSIS, we also need to understand some of its BASICS, it is important to note that FUNDAMENTAL ANALYSIS is to study different things and FACTS related to a company and its business as a whole.

In such a situation, first of all, we need to STUDY about what BUSINESS and what stage it goes through before it is listed in the stock market.

Let's first understand these two basic things - how a business starts, and how it gets listed in the growing stock market.