Abstract
A successful investment strategy would be based on the ability of the analyst to identify a security that can generate desired returns at an acceptable level of risk. It would also allow you to buy or invest in such a security when it is available at a lower/cheaper (than usual) price (in a market) and sell the same security when it is trading at a higher price (in the same or another market). This chapter focuses on the former of these aspects: the identification of a security which is intrinsically sound and can generate returns. The analysis so deployed is called fundamental analysis. The analysis undertaken for the estimation of the appropriate time to buy or sell such a security is termed technical analysis and will form the subject matter of the next chapter. Both these analyses are conducted to select appropriate financial instruments, whether debt or equity, based on the risk–return profile of the investor.
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Additional Readings and References
Additional Readings
Bodie, Z., Kane, A., Marcus, A. J., & Mohanty, P. (2005). Investments (6th ed.). Tata McGraw-Hill.
Chandra, P. (2009). Investment analysis and portfolio management (3rd ed.). Tata McGraw-Hill.
Fisher, D. E., & Jordan R. J. (1995). Security analysis and portfolio management (4th ed.). Prentice-Hall.
Gordon, A., Sharpe, J., William, F., & Bailey, J. V. (2009). Fundamentals of investment (3rd ed.). Pearson Education.
Graham, B., & Dodd, D. L. (2009). Security analysis (6th ed.). McGraw Hill.
Jones, C. P. (2010). Investment analysis and management (9th ed.). Wiley.
Reilly, F., & Brown, K. (2003). Investment analysis & portfolio management (7th ed.). Thomson South-Western.
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Singh, S., Yadav, S.S. (2021). Fundamental Analysis. In: Security Analysis and Portfolio Management. Classroom Companion: Business. Springer, Singapore. https://doi.org/10.1007/978-981-16-2520-6_4
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DOI: https://doi.org/10.1007/978-981-16-2520-6_4
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