Fundamental analysis Essays

  • Elliot Wave Theory Essay

    719 Words  | 3 Pages

    by many as hypothetical theory and it contradicts the concepts of price and volume actions. It depends on crowd psychology and this may not be a valid reason to go with all the time. It sounds much of a subjective way of analysis and as such this is cannot be a valid way of analysis all the

  • Probability System Analysis Assignment

    981 Words  | 4 Pages

    SCHOOL OF ELECTRICAL ENGINEERING UNIVERSITY OF THE WITWATERSRAND, JOHANNESBURG ELEN 3007: PROBABILISTIC SYSTEM ANALYSIS STOCHASTIC PROCESSES ASSIGNMENT BAKHEKILE NDLOVU, 717143 18 SEPTEMBER 2015 Introduction Probability, random variables and random processes have applications in a wide range of fields. One application of probability theory is in the stock market where investors take advantage of the random fluctuations to maximize their benefits. These random fluctuations can be described using

  • The Influential Theory Of Stock Market Trading

    1596 Words  | 7 Pages

    1. Introduction The efficient market hypothesis is one of the most influential theories on stock market trading. Even if not known by name, its implication that any efforts undertaken to construct a portfolio to outperform the market are fruitless is a barrier faced by financial managers and amateur traders alike. The theoretical framework of the efficient market hypothesis was formulated by Samuelson (1965) and Fama (1965). Samuelson's approach is more theoretical while Fama tries to prove

  • Value Investment Theory

    842 Words  | 4 Pages

    Value investing is a fundamental analysis approach formulated by Graham and Dodd (1934) that focuses on companies whose share prices do not reflect their intrinsic worth. A value investor buys a stock if its price is low relative to some fundamental benchmarks such as earnings, cash, dividends, or book value (Bartov and Kim, 2004), and expects that the market will properly recognize the company’s value and adjust the stock price accordingly. Typically, value stocks have attributes such as low ratios

  • Strategic Goals And Goals Of Lufthansa Group

    1483 Words  | 6 Pages

    financial statements from parent companies that own or control subsidiary companies or have controlling interests in joint ventures and strategic partnerships. The ultimate benefit of consolidated financial statements: 1- Ease of understanding and analysis of a company's financial condition for investors, creditors, vendors and anyone else who needs to know how secure the company is with respect to being able to pay its bills and continue as a profitable enterprise. 2- They can be manipulated to hide

  • Efficient Market Hypothesis Essay

    1444 Words  | 6 Pages

    Efficiency of financial markets is one of the fundamental issues in finance. The central idea of market efficiency is that market prices of securities represent true value of securities. All relevant information is immediately reflected in the prices causing abnormal profit making impossible in the market. The efficient market hypothesis further implies that prices will move randomly that makes prediction of prices extremely difficult. Efficient market hypothesis requires that investors will be rational

  • Financia Sales Contract: A Case Study

    963 Words  | 4 Pages

    In the case of future contracts, this objection has been entered into, that the said contracts are considered as void contracts, because the future deal on the exchange causes to ignorance the parties, which would be profitable for the other party.13 As a result, the futures contract is a prerequisite for transactions. However, on the contrary, it has been argued that, firstly, trades on a stock exchange are more transparent than proprietary ones, and this transparency is considered as one of the

  • Examples Of Efficient Market Hypothesis

    1341 Words  | 6 Pages

    Literature Review The Efficient Market Hypothesis The efficient market hypothesis or EMH is one of the fundamental theories of traditional finance. Two economists, Paul A. Samuelson and Eugene F. Fama, independently developed the efficient market hypothesis in modern financial times, but the phenomenon behind the efficient market hypothesis goes as far back as 1565, with evidence of random walks in the market. The efficient market hypothesis simply states that

  • Advantages Of Exchange Market Algorithm

    1074 Words  | 5 Pages

    Hybrid Exchange Market-Genetic algorithm Names Faculty of Electrical and Computer Engineering University of Tabriz Abstract−In this paper, we proposed a new hybrid algorithm that is a combination of two operational and effective algorithms. Genetic algorithm (GA) and exchange market algorithm (EMA) are two evolutionary algorithms in which they used to find the optimal answers of the different functions. EMA follows the rules in the stock market and the shareholders buy and sell. because of GA's

  • Theory Of Size Effect Essay

    2226 Words  | 9 Pages

    Starting from the late 1970’s, empirical examinations of the traditional CAPM indicate the possible existence of anomalous excessive returns related to size, book-to-market, earnings yield and leverage variables among others. Ball (1978) suggest that the Earnings Price (E/P) ratio, an accounting variable obtained by dividing the earnings of a firm with its stock price, may be a direct proxy for expected returns. He states that the abnormal returns on stocks following earnings announcements are not

  • International Portfolio Diversification

    1506 Words  | 7 Pages

    Introduction: - As the old adage goes “never keep all your eggs in the same basket”; diversification should be the key factor in any investing modus operandi. This statement still holds true today as demonstrated by its empirical validity. The pioneering theoretical model of portfolio selection developed by Markowitz and Tobin reinforces this statement by providing an argument favouring the diversification of risky assets underlining that the degree to which diversification can reduce risk depends

  • Boeing International Operations Analysis

    1345 Words  | 6 Pages

    Analysis of International Operations of Boeing Company Background A brief look at Boeing’s history The history of Boeing Company goes back to 1916, when William E. Boeing founded Pacific Aero Products Co., after developing the single-engine B&W seaplane together with Conrad Westervelt. The company was later renamed as "The Boeing Airplane Company" in 1917 and, the company started by manufacturing boats for the US Navy, and later on manufactured aircrafts including pursuit planes, patrol bombers

  • Dividend Theory Summary

    964 Words  | 4 Pages

    The present research aims to test theories of investor preferences for dividends versus capital gains by using data from some companies listed on Tunis Stock Exchange (TUNINDEX); first, Merton Miller and Franco Modigliani theory (MM), this study investigates the effects of dividend payouts on the stock value by finding the relationship between dividend payouts and the required rate of return on stock as well as the relationship between dividend payouts and the company’s value represented by Tobin’s

  • Rex Tillerson Leadership Style

    1539 Words  | 7 Pages

    LEADERSHIP TRAITS AND DECISION MAKING STYLE OF REX W TILLERSON AS A SUCCESSFUL ENTREPRENEUR Introduction 1. There is a strong relationship between economic growth and the leadership style adopted by the managers at the highest level of organizations. The outcome of any organization would greatly depend upon how their managers or leaders plan and act to achieve desirable goals. An entrepreneur leadership style is closely connected with the economy and business world. Such persons have aspiration

  • Chaos Theory Case Study

    3050 Words  | 13 Pages

    nonlinearity and chaotic characteristics. In recent times such nonlinear dynamics and chaotic dynamics have augmented in the field of financial analysis. This paper studies the extent to which the daily return data from the Indian Stock Exchange Indices (Nifty & Sensex) exhibit these non-linear, non-random characteristics. The Hurst exponent in Rescaled range analysis rejects the hypothesis that the index return series

  • Asset Pricing Theory Vs Capm Analysis

    1183 Words  | 5 Pages

    1.0 ARBITRAGE PRICING THEORY (APT) The Asset Pricing Theory is an approach to determining asset values based on law of one price and no arbitrage. Founded upon the work of Ross (1976, 1977), it aims to analyze the equilibrium relationship between assets’ risk and expected return just as the CAPM does. The two key CAPM assumptions of perfectly competitive and efficient markets and homogeneous expectations are maintained. Moreover, in line with the CAPM, the APT assumes that portfolios are sufficiently

  • Bidder's Valuation Analysis

    1541 Words  | 7 Pages Sealed-Bid First-Price Auction In both the English and Dutch auctions bidders are allowed an explicit insight into the valuation of their competitors i.e. in an English Auction a lack of activity suggests that a bidder’s valuation is less than the current winning bid and in Dutch auction a lack of activity suggests that a bidder’s valuation is below the current winning bid. This information can be misleading given the incentives for strategic behaviour apparent in both cases i.e. bidders

  • Essay On Candlestick

    1695 Words  | 7 Pages

    CHARTS MAY BE DEAF AND DUMB BUT THEY COMMUNICATE PERFECTLY. “The real key to making money in stocks is not to get scared out of them.” - Peter Lynch Candlesticks are graphical representations of the price action of the market. A candlestick can represent any time or period. A person that trades will have software that provides the charts representing different time rates from one minute up to one month. Candlestick charts are a visual way to view your stock platform. Candlestick signals

  • What Is Fundamental Analysis

    1709 Words  | 7 Pages

    Chapter 4: What is Fundamental Analysis? You can use fundamental analysis to assess a particular asset for its intrinsic value. In fundamental analysis, you examine qualitative and quantitative factors that affects the asset’s value. You study the industry conditions and the general economy. Also, you take note of the company management, and the company’s financial conditions. Fundamental analysis can help you determine the undervalued and overvalued stocks. In fundamental analysis, you want to find

  • Pricing Commodity: Fundamental Analysis

    2157 Words  | 9 Pages

    discovery is done through two popular methods: 1. The Fundamental analysis is concerned with basic supply and demand information, such as, weather patterns, carryover supplies, relevant policies of the Government and agricultural reports. • Fundamental analysis is a means of analyzing commodities and trying to predict where the prices of commodities should be trading and what they will do in the future. The main basis for fundamental analysis is supply and demand. • Supply and demand is a very simple