LET’S FIRST DISCUSS ABOUT ADVANTAGES OF FUNDAMENTAL ANALYSIS IN STOCK MARKET.
1, IT IS BASED ON SOUND FUNDAMENTAL DATA WHICH IS QUANTITATIVE IN NATURE.
2.IT TAKES VARIOUS FINANACIAL NUMBERS OF COMPANY INTO ACCOUNTLIKE MACRO ECONOMICS FUNCTIONS RELATED TO ECONOMY.
3.IT MAKES YOU UNDERSTAND YOUR BUSINESS WHICH YOU HAVE INVESTED YOUR HARD-EARNED MONEY.
4.IT HELPS YOU TO ASSESS THE QUALITY OF MANAGEMENT, TO KNOW WHETHER WEALTH IS CREATED OR DESTROYED IN LONG RUN.
5.FUNDAMENTAL ANALYSIS HELPS YOU TO ANALYZE STOCK WHICH CAN HELP YOU TO KNOW FINANACIAL STATEMENTS OF A COMPANY, WHETHER IT IS GOOD OR BAD ABOUT COMPANY.
6.FUNDAMENTAL ANALYSIS IS A SYSTEMATIC APPROACH MAKING USES OF VARIOUS ANALYTICAL AND STATISTICAL TOOLS.
7.FUNDAMENTAL ANALYSIS HELPS INVESTORS ESPECIALLY LONG-TERM INVESTORS TO BUILD A GREAT FORTUNE AND FAME.
DISADVANTAGES OF FUNDAMENTAL ANALYSIS.
1.IT IS TIME CONSUMING AND TEDIOUS.
2IT IS SUBJECTIVE AT TIMES.IT REQUIRES LOTS OF SKILL, KNOWLEDGE AND EXPERIENCE.
3.IT DOES NOT TAKE HUMAN EMOTIONS OF GREED AND FEAR INTO ACCOUNT AS THEY ARE MAINLY RESPOSIBLE FOR BULL AND BEAR PHASESIN STOCK MARKET.
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