Security Analysis is the first part of the investment decision process involving the valuation and analysis of individual securities. This would consist of examining the risk-return characteristics of individual securities or groups of securities. The aim here is to know if it is worthwhile to acquire these securities for the portfolio. Security analysis is all about identifying mispriced securities.
Based on different premises and following different techniques, there are two approaches of Security Analysis:
- Fundamental Analysis
- Technical Analysis
April 11, 2022
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