ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A person who looks at a company’s financial statements and trends in the economy to make decisions illustrates what style of investing?
A
socially responsible investing
B
fundamental analysis
C
technical analysis
D
zero-sum investing
Explanation: 

Detailed explanation-1: -One of the main tasks of a financial analyst is to perform an extensive analysis of a company’s financial statements.

Detailed explanation-2: -Horizontal Company Financial Statement Analysis With a Horizontal Analysis, also, known as a “trend analysis, ” you can spot trends in your financial data over time. For example, a $2 million profit year looks impressive following a $0.25 million profit year, but not after a $10 million profit year.

Detailed explanation-3: -A financial analyst will thoroughly examine a company’s financial statements-the income statement, balance sheet, and cash flow statement. Financial analysis can be conducted in both corporate finance and investment finance settings.

Detailed explanation-4: -What are some things you look for in financial statements as an investor? When analyzing financial statements, investors should consider reviewing a company’s net profit, sales and revenue growth, debt level, profit margin, and free cash flow.

There is 1 question to complete.