The market analysis known as fundamental analysis
A)predicts future trends in the financial drivers of a company's success or failure.
B)relies on price and volume movement of stock.
C)has no insights about company value beyond current market price.
D)uses microeconomic data to forecast stock values.

Question

Quizplus · Accepted Answer

Fundamental analysis involves analyzing a company's financial statements and economic indicators to predict future trends in the financial drivers of a company's success or failure. It looks beyond the current market price to determine a company's intrinsic value. It uses microeconomic data to forecast stock values. Therefore, option A is the correct answer. Option B is incorrect because it describes technical analysis, not fundamental analysis. Option C is incorrect because fundamental analysis goes beyond current market price. Option D is incorrect because it contradicts the definition of fundamental analysis, which involves analyzing microeconomic data.

The Market Analysis Known as Fundamental Analysis