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Investment Opportunities Fast Facts, Last Updated:09/05/2010 To try to identify good shares to invest in, two main schools ofthought exist: technical analysis and fundamental analysis. The formerinvolves the study of the price history of a share(s) and the pricehistory of the stock market as a whole; technical analysts havedeveloped an array of indicators, some very complex, that seek totease useful information from the price and volume series.Fundamental analysis involves study of all pertinent informationrelevant to the stock and market in question in an attempt toforecast future business and financial developments including thelikely trajectory of the share price(s) itself. The fundamentalinformation studied will include the annual report and accounts,industry data (such as sales and order trends) and study of thefinancial and economic environment (e.g. the trend of interestrates). |
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