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Security analysis is essential for for making intelligent investments in equities of companies. In the case of examining a potential investment in the stock of a particular company research is done on a company's profits and projected profits. Other reasons are as follows:

* assess the competition in a particular industry;

* assess the skills and business records of a company's executives;

* determine whether the company makes profits on a cyclical basis;

* examine the public reports of top management people who are buying or selling the stock of their own company;

* examine the price to earnings ratio; and

* examine the company's dividend history and policies.

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10y ago
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10y ago

It depends upon the Government Policies,Regulations etc of the country

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Q: Importance of Economic Analysis in security analysis?
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Continue Learning about Economics

Functions of managerial economist?

1.sales forecasting 2.industrial market research 3.economic analysis of competing companies 4.pricing problems of industry 5.capital projects 6.production programmes 7.security analysis and forecasts 8.advice on trade and public relations 9.advice on foreign exchange 10.economic analysis of agriculture 11.environmental forecasting.


Is security an economic goal?

Not security but stability is.


Which of the following is not an economic goal?

Victory


What 5 major economic goals?

Economic Effiency Economic Freedom Economic Security Economic Equity Economic growth and Innovation


What is the objective of security analysis?

Regular income - the income from the investment should be regular and consistent one. The high fluctuation is income stream is not suitable for the long-term growth. Capital appreciation - the investment must yield regular income as well as growth in value i.e, capital appreciation. It is the difference between the selling price and purchase price. Safety of capital - the capital invested in assets requires the safety. Safety is the important element which protects the loss of capital and return from the investments. Liquidity - liquidity is the ease of convertibility or marketability of assets. Hedge against Inflation - the inflation is the biggest problem we are facing today, hence the rate of return from the investment requires high yield to beat inflation rate. These are the major objectives of an investor; to attain these objectives a careful and critical security analysis is necessary. The literature on security analysis can be consolidated to form three approaches to explaining the behavior of share prices and their valuation. These analysis are used to find out the answer for the question like, why share prices fluctuate, how they are determined, what to buy or sell and when to buy or sell.

Related questions

When was Security Analysis - book - created?

Security Analysis - book - was created in 1934.


How many pages does Security Analysis - book - have?

Security Analysis - book - has 770 pages.


Objective of security analysis?

The objective of a security analysis is to ensure your computer network is as secure as possible. A security analysis will help you find weaknesses in your system in order to develop your security protocols.


What is fundamental analysis?

Concerning investing fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. More on fundamental analysis can be found at investopedia.com


What is security analysis?

Financial instruments that are tradable are analyzed with security analysis. It can be categorized into equities, securities and hybrids.


What is the ISBN of Security Analysis book?

The ISBN of Security Analysis - book - is 0-07-144820-9.


Project report on market analysis of electronic security system?

market analysis


What is the scope of security analysis?

Scope of security in Private industry


How does one find a company to do a security analysis?

There are many different ways that a person can find a company to do a security analysis such as search through a local phone book to find a company or there are also many online companies that offer security analysis. There are many available books that offer information and assistance with security analysis that can be purchased from a local bookstore or online retailer.


What Risk is determined from the analysis of available safeguards for IS assets security requirements threats and?

What Risk is determined from the analysis of available safeguards for IS assets security requirements threats and?


Functions of managerial economist?

1.sales forecasting 2.industrial market research 3.economic analysis of competing companies 4.pricing problems of industry 5.capital projects 6.production programmes 7.security analysis and forecasts 8.advice on trade and public relations 9.advice on foreign exchange 10.economic analysis of agriculture 11.environmental forecasting.


Latest computers topics in research?

network security, cyber analysis