fundamental analysis

fundamental analysis definition - finance
The practice of valuing companies by looking at revenues and earnings and then analyzing the companyÂ’s management and the prospect for its products or services to be successful. Fundamental analysis also can be used to look at entire industries or commodities markets. Fundamental analysis of a company or commodity is in contrast to technical analysis, which looks only at price charts to form an opinion about the companyÂ’s or marketÂ’s direction. As applied to the economy, fundamental research involves analyzing economic statistics, such as unemployment.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.