What is security analysis?

It involves analyzing various factors, such as financial statements, industry trends, market conditions, and company-specific information, to make informed investment decisions. There are two primary approaches to security analysis, fundamental Analysis and technical Analysis.

What are the different types of security analysis?

There are two primary approaches to security analysis, fundamental Analysis and technical Analysis. Security analysis deals with finding the proper value of individual securities (i.e., stocks, bonds and derivatives). These are usually classified into debt securities, equities, or some hybrid of the two.

What does a security analyst do?

Security analysts must act with integrity, competence, and diligence while conducting the investment profession of doing security risk analysis. Using various analytical tools, including fundamental, technical, and quantitative approaches. Security analysts should place the interest of clients above their interests.

What are the limitations of security analysis?

While security analysis is valuable, it has certain limitations. These include the inherent uncertainty in predicting market trends, the influence of non-financial factors on security prices, challenges related to the availability and accuracy of financial data, and the difficulty of accurately valuing complex securities.