which is most profitable share.....




HOW CAN EARN PROFIT THROUGH INVETMENT...?

The primary motive of buying a share is to sell it subsequently at higher price, and earn profit. In many cases individuals expects dividends also. For earning more profit through investment, proper analysis is important. There are generally two analysis, fundamental analysis and technical analysis. An investor who would like to be rational and scientific in his investment activity has to evaluate a lot of information about the past performance of companies, industries, and the economy as a whole before taking the investment decision. Such an evaluation is called fundamental analysis.


FUNDAMENTAL ANALYSIS

fundamental analysis is really a logical and systematic approach to estimating the future dividends and price of a security. It is based on the basic premise that share price is determined by a number of fundamental factors relating to the economy, industry, and company. Hence the economy fundamentals, industry fundamentals, and company fundamentals have to be considered while analyzing a security for investment purpose. Each share is assumed to have an economic worth based on its present and future earning capacity. This is called it's intrinsic value or fundamental value. The purpose of fundamental analysis is to evaluate the present and future earning capacity of a share based on the economy, industry and company factors. the investor will compare the difference between actual value and actual value of the share and take proper decision.

So the fundamental analysis can classifies in to

  1. economy analysis
  2. industry analysis
  3. company analysis

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