PS D1: What Are Stocks? Flashcards
1
Q
What is fundamental analysis?
A
Judging stocks based on business, meaning revenue & profit and loss
2
Q
What is technical analysis?
A
Judging stocks based on price action and chart patterns
3
Q
Why do companies offer shares?
A
To raise capital for operations, companies sell % ownership
4
Q
What does “Supply/Demand” have to do with stocks?
A
More buyers than sellers, prices rise, more sellers than buyers, prices fall.