Fundamental Analysis FAQs

  1. How do I start using technical analysis?

  2. What is the difference between weighted average shares outstanding and basic weighted average shares?

  3. What is a cross hedge?

  4. What is the McGinley Dynamic?

  5. How do I value the shares that I own in a private company?

  6. Does the balance sheet always balance?

  7. What does it mean when "N/A" appears for a company's P/E ratio?

  8. What is the Coppock curve?

  9. What is the difference between return on equity and return on capital?

  10. Can a stock have a negative price-to-earnings (P/E) ratio?

  11. What is the weighted average of outstanding shares? How is it calculated?

  12. Can technical analysis be called a self-fulfilling prophecy?

  13. What's the difference between "top-down" and "bottom-up" investing?

  14. What is Fibonacci retracement, and where do the ratios that are used come from?

  15. Can a company declare a dividend that exceeds its earnings per share?

  16. What number of shares determines adequate liquidity for a stock?

  17. Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always a better investment than a stock with a higher one?

  18. Which of the following terms are associated with the purchase/redemption of open-end investment company shares?

  19. What is the difference between fundamental and technical analysis?

  20. What technical tools can I use to measure momentum?

  21. Why are P/E ratios generally higher during times of low inflation?

  22. What is the difference between economic value added and market value added?

  23. Where can I find the P/E ratios for the Dow and S&P 500?

  24. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they mean, how do they differ from each other, and what causes them to act as support or resistance?

  25. What is a split-adjusted share price?

  26. When computing the PEG ratio for a stock, how is a company's earnings growth rate determined?

  27. What's the difference between absolute P/E ratio and relative P/E ratio?

  28. Where do I place my target when the price of a stock breaks out of a technical chart pattern?

  29. What does it mean to use technical divergence in trading?

  30. Is maximizing stock price the same thing as maximizing profit?

  31. Is it possible for a company to have a positive cash flow and a negative net income?

  32. What do the bracketed numbers following a technical indicator mean?

  33. How do I take qualitative factors into consideration when using fundamental analysis?

  34. Does a strong trend (ADX > = 40) cause an increase in volatility?

  35. What's the difference between old- and new-economy stocks?

  36. How do you determine a company's percentage of credit sales?

  37. Is technical analysis used only to analyze stocks?

  38. What is the difference between fast and slow stochastics in technical analysis?

  39. What is the best method of analysis for forex trading?

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