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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.

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Q: What is the objective of security analysis?
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What are the objective of break even chart and its significance?

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