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13 Fundamental And Technical Analysis > Fundamental And Technical Analysis Csc 2 > Flashcards

Fundamental And Technical Analysis Csc 2 Flashcards

1
Q

What is fundamental analysis?

A

Fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value through analyzing related economic, financial, and other qualitative and quantitative factors.

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2
Q

True or False: Technical analysis focuses on historical price movements and trading volumes.

A

True

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3
Q

Fill in the blank: Fundamental analysis primarily examines a company’s _____ and _____ to assess its stock value.

A

financial statements, economic conditions

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4
Q

What is the primary goal of technical analysis?

A

The primary goal of technical analysis is to forecast future price movements based on historical price patterns and market trends.

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5
Q

Multiple Choice: Which of the following is not a component of fundamental analysis? A) Earnings Reports B) Price Charts C) Economic Indicators D) Management Quality

A

B) Price Charts

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6
Q

What does the term ‘bull market’ refer to?

A

A bull market refers to a market condition where prices are rising or are expected to rise.

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7
Q

Short Answer: Name one key indicator used in technical analysis.

A

Moving Average

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8
Q

True or False: Fundamental analysts typically use charts to make investment decisions.

A

False

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9
Q

What is a ‘bear market’?

A

A bear market is a market condition characterized by declining prices, typically 20% or more from recent highs.

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10
Q

Multiple Choice: Which of the following is a fundamental analysis ratio? A) RSI B) P/E Ratio C) MACD D) Bollinger Bands

A

B) P/E Ratio

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11
Q

Fill in the blank: The _____ is a financial metric that compares a company’s current share price to its earnings per share.

A

Price-to-Earnings (P/E) Ratio

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12
Q

What does ‘support level’ mean in technical analysis?

A

A support level is a price level at which a stock or market tends to stop falling and may bounce back up.

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13
Q

Short Answer: What is the purpose of a stock’s dividend yield?

A

To measure the return on investment from dividends relative to the stock price.

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14
Q

True or False: The Moving Average Convergence Divergence (MACD) is used in fundamental analysis.

A

False

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15
Q

What is the significance of the ‘current ratio’ in fundamental analysis?

A

The current ratio measures a company’s ability to pay short-term obligations with its short-term assets.

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16
Q

Multiple Choice: Which of the following is a common chart pattern in technical analysis? A) P/E Ratio B) Head and Shoulders C) Net Income D) Market Capitalization

A

B) Head and Shoulders

17
Q

Fill in the blank: The _____ is a market indicator that shows the average price of a group of stocks.

A

Stock Index

18
Q

What does ‘overbought’ mean in technical analysis?

A

Overbought refers to a condition where a stock has risen sharply and may be due for a price correction.

19
Q

Short Answer: What is the purpose of a financial statement?

A

To provide an overview of a company’s financial performance and position.

20
Q

True or False: A high debt-to-equity ratio indicates a company is less leveraged.

A

False

21
Q

What is the ‘earnings per share’ (EPS) metric?

A

EPS is a company’s profit divided by the outstanding shares of its common stock.

22
Q

Multiple Choice: Which of the following is a leading economic indicator? A) GDP B) Unemployment Rate C) Stock Market Performance D) Inflation Rate

A

C) Stock Market Performance

23
Q

Fill in the blank: A _____ is a situation where a company’s stock price is driven down due to negative news or earnings reports.

A

market correction

24
Q

What is the significance of volume in technical analysis?

A

Volume indicates the number of shares traded in a given period, which helps confirm price trends.

25
Q

Short Answer: What does ‘market capitalization’ refer to?

A

Market capitalization refers to the total market value of a company’s outstanding shares.

26
Q

True or False: The price-to-book (P/B) ratio compares a company’s market value to its book value.

A

True

27
Q

What is a ‘trend line’ in technical analysis?

A

A trend line is a line drawn on a chart to connect price points and indicate the direction of price movement.

28
Q

Multiple Choice: Which of the following is a characteristic of a growth stock? A) High dividend yield B) Low P/E ratio C) Strong potential for future earnings growth D) Stable earnings

A

C) Strong potential for future earnings growth

13 Fundamental And Technical Analysis (3 decks)

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