CHAPTER 13Fundamental analysis

So far, we have discussed some of the mechanics of buying and selling shares, and covered some of the reasons for developing an investment strategy when creating a diversified portfolio. For those investors who like to undertake their own analysis or want a better understanding of how their adviser may make an individual share recommendation, this chapter and the next one will introduce two broad approaches to share analysis: fundamental analysis and technical analysis.

Fundamental analysis is the study of the various factors that affect a company’s earnings and dividends, as well as the impact on the relative safety of an investment in a certain company due to the relationship between its share price and the ...

Get Starting Out in Shares the ASX Way, 3rd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.