Financial statements are crucial in investment decisions that use fundamental analysis to identify mispriced securities (i.e.,securities selling for more or less than they seem to be worth).

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Financial statements provide important information about a company's financial performance and health, which is used in fundamental analysis to determine the true value of a security. Mispriced securities can be identified by comparing the market price with the value derived from fundamental analysis using financial statements. Therefore, financial statements are crucial in investment decisions that use fundamental analysis.

Financial Statements Are Crucial in Investment Decisions That Use Fundamental