Monday, November 29, 2010

Security Analysis

Performing security analysis, involves examining several individual securities (or of securities) with in the board categories of financial assets. Previously identified one purpose for conducting such examinations is to identify those securities that currently appear to be mispriced. There are many approaches to security analysis. However, most of these approaches fall into one of two classifications. The first classifications is known as technical analysis; analyst who use this approach to security analysis are known as technicians and technical analysts.

The second classifications is know as fundamentals analysis, those who use it are knows as fundamentalists or fundamental analysts. In discussing these two approaches to security analysis, the focus at first will be on common stock. Laters they will be discussed in terms of other types of financial assets.

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