Chapter 13 Fundamental and Technical Analysis KT Flashcards
An industry with a record of stable earnings and continuous dividend payments and which has demonstrated relative stability in poor economic conditions.
defensive industries
Chart formations that usually precede a sizeable advance or decline in stock prices.
reversal pattern
A method of market and security analysis that studies investor attitudes and psychology as revealed in charts of stock price movements and trading volumes to predict future price action.
technical analysis
The average of security or commodity prices calculated by adding the closing prices for the underlying security over a pre-determined period and dividing the total by the time period selected.
moving average
An active, leading, nationally known common stock with a record of continuous dividend payments and other strong investment qualities.
blue-chip
A chart formation indicating that the current trend will continue.
continuation pattern
The theory that a stock’s price reflects all available information and reflects its true value.
efficient market hypothesis
A trend reversal pattern that can occur either at a market top or at a market bottom and consists of a shoulder, a head, and a second shoulder and the breaking of a neckline.
head-and-shoulders formation
An industry that has moved out of the maturity stage and is now growing at rates slower than the overall economy, or has a slowing growth rate.
declining industries
An industry that experiences slower, more stable growth rates in profit and revenue than growth or emerging industries.
mature industries
An industry in which sales and earnings are consistently expanding at a faster rate than in most other industries.
growth industry
An industry that is particularly sensitive to swings in economic conditions.
cyclical industry
Which investors use sentiment indicators to determine what the majority of investors expect prices to do in the future so that they can take the opposite position?
contrarian investors
Based on the assumption that price moves in predictable waves; used to forecast when the market will start moving in a particular direction and when it will ultimately reach its peak or trough.
cycle analysis
Security analysis based on facts about a company as revealed through its financial statements and an analysis of economic conditions that affect the company’s business.
fundamental analysis
