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Securities Analysis: fundamental analysis

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I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand this question.

What is fundamental analysis? How does fundamental analysis impact your securities analysis?

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The solution explains the details of fundamental analysis.

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Fundamental analysis is a technique for finding the intrinsic value of any security. Fundamental analysis focuses on the current situation of the firm and calculates the intrinsic value using the financial statements of the firm, its future prospects and the general economic situation. It uses the financial statements to do a ratio analysis to under stand the financial health of a ...

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