Explore BrainMass

Explore BrainMass

    Fundamental analysis and technical analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Security analysis is the analysis of tradable financial instruments (e.g., debt securities, equity securities, hybrid securities, etc.) called securities. Security analysis is typically divided into categories—fundamental analysis and technical analysis. While fundamental analysis relies upon the examination of fundamental business factors such as financial statements, technical analysis focuses upon price trends and momentum. The main purpose of a security analysis is to determine whether to purchase a particular security including common stock. The security analysis is also performed for a wider audience. For example, a security analyst at an investment bank may produce a security analysis for distribution to clients. Similarly, the security analyst may work for a mutual fund company and be responsible for identifying potential security investment opportunities.

    Now try short term trading, Use an imaginary $894,000 to buy some shares of a stock that will possibly go up in the next day or so. for instance invest the entire $894,000 already—sell some of the securities at today's market price in order to have at least $50,000 in cash to get into the "day trading."

    Update the Excel portfolio with the most recent trades. Add gain/loss column(s)

    Which stock were choosen, why? Include concepts of technical analysis that were used from the readings.
    What would you recommend to other day traders and investors? Would you suggest other investors to enter in the day trading market? Include reasoning.

    Include portfolio on Excel spreadsheet.
    Include financial analysis along with at least two pages of reasoning.

    © BrainMass Inc. brainmass.com October 2, 2020, 5:52 am ad1c9bdddf

    Solution Preview

    The response addresses the query is posted in 882 words with APA References.

    // Portfolio development is important to balance return and risk with diversity of invested securities. In this relation in the following discussion, the focus is given over the development of the portfolio with selection process of the invest securities in order to earn high return. Furthermore, there is discussion over day trading in order to earn profitability.//

    Portfolio of the securities should be valuable in terms of return and risk that means the rate of return should be reasonable compensates the rate of risk. The amount to be invested into a security is $89400 for the investment in order to develop valuable portfolio. The return from the portfolio should be reasonable in order to increase overall profitability of the investment. In order to develop a valuable portfolio, there is need to evaluate risk and return associated with different kind of securities available in the market.

    The development of the portfolio will be done with selection of equity share of a company because the growth of the company directly impacts the price and return of the investment in the equity share of the company. The investment of $894000 is made in the equity shares of United Parcel Service, Inc. at $94.72 on August 24, 2015 in order to develop a valuable portfolio. The total volume of equity share ...

    Solution Summary

    The fundamental analysis and technical analysis are examined. The response addresses the query is posted in 882 words with APA References.