Fundamental analysis is likely to yield best results for ________.
A)NYSE shares
B)neglected shares
C)shares that are frequently in the news
D)fast growing companies

Question

Quizplus · Accepted Answer

Fundamental analysis involves examining a company's financial health, management, industry trends, and other factors to determine the intrinsic value of its stock. Neglected shares, or those that have not received much attention from analysts or investors, may be undervalued and present opportunities for investors who are willing to do the research required for fundamental analysis.

Option A is incorrect because stocks listed on the NYSE are not inherently better or worse for fundamental analysis than those on other exchanges.

Option C is incorrect because frequent news coverage does not necessarily indicate a company's financial health or potential for growth.

Option D is incorrect because while fast-growing companies may seem attractive, they may also be overvalued and not present good investment opportunities. Fundamental analysis is about determining the intrinsic value of a company's stock, regardless of its growth potential.

Fundamental Analysis Is Likely to Yield Best Results for ________