Fundamental and Technical Analysis

Two analytical models exist to determine the appropriate price of an equity security.

Fundamental analysis focuses on analyzing a company’s financial statements and condition, its management, and its markets and competitive position.

Technical analysis focuses on studying a company’s market action via the supply of and demand for its securities in order to estimate future price trends. Michael Kahn writes for Barron’s Magazine and has an excellent blog, Behind the Headlines, that concentrates on the techinical analysis of securities and markets.


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