Ms. Hart's stock club uses numerous charts that plot past price movements and other stock ratios. Her club relies on _______ analysis to determine stock selections.

Question

Quizplus · Accepted Answer

The use of charts to analyze past price movements and other stock ratios is a characteristic of technical analysis, which is the approach used by Ms. Hart's stock club. Fundamental analysis, on the other hand, focuses on analyzing a company's financial statements and other economic data to determine its intrinsic value. Efficient market theory suggests that all relevant information is already reflected in the stock price, while chart and plot are not appropriate terms to refer to the analysis approach used by the stock club.

Ms Hart's Stock Club Uses Numerous Charts That Plot Past