The most important words you need to know in fundamentals

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What Is Fundamental Analysis?
Fundamental analysis (FA) is a method of measuring a security's intrinsic value by examining related economic and financial factors.
Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company's management.
The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued.
This method of stock analysis is considered to be in contrast to technical analysis, which forecasts the direction of prices through an analysis of historical market data such as price and volume.

Now you know what is fundamental analysis, But before you start to learn more about it, Its better to know the important words that authors use in their articles !
📚 On this Article you'll learn about 25 of them and we'll continue to post the other in next educational posts; It's easier for you to read and remember !


1. Assets: Capital that is frozen as in property, real estate or possession.

2. Bearish: The falling trend of assets and shares in markets.

3. Bonds: Governmental bonds that ensure a fixed rate of interest in often long
term investment.

4. Boycott: To protest by refusing to purchase from someone, or otherwise do
business with them. In international trade, a boycott most often takes the form of
refusal to import a country's goods.

5. Bribe: A payment made to a person, often a government official such as a
customs officer, to induce them to treat the payer favorably.

6. Broker's fee: The fee for a transaction charged by an intermediary in a
market, such as a bank in a foreign-exchange transaction.

7. Bubble economy: Term for an economy in which the presence of one or
more bubbles in its asset markets is a dominant feature of its performance.

8. Bubble: A rise in the price of an asset based not on the current or prospective
income that it provides but solely on expectations by market participants that the
price will rise in the future. When those expectations cease, the bubble bursts and
the price falls rapidly.

9. Budget deficit: The negative of the budget surplus; thus the excess of
expenditure over income.

10. Budget surplus: Refers in general to an excess of income over expenditure,
but usually refers specifically to the government budget, where it is the excess of
tax revenue over expenditure (including transfer and interest payments).

11. Bullish: A rising trend in the significant increase of funds and shares in the
stock market.

12. Capital: the large amount of money or investment.

13. Capital loss: The loss in value that the owner of an asset experiences when
the price of the asset falls, including when the currency in which the asset is
denominated depreciates. It contrasts with capital gain.

14. Cartel: An agreement among, or an organization of, suppliers of a product. A
group of firms that seeks to raise the price of a good by restricting its supply. The
term is usually used for international groups, especially involving state-owned firms
and/or governments.

15. Cash dividend: Cash distribution of earnings to stockholders, usually on a
quarterly basis.

16. Commodity: Could refer to any good, but in a trade context a commodity is
usually a raw material or primary product that enters into international trade, such
as metals (tin, manganese) or basic agricultural products (coffee, cocoa).

17. Compensation: whoever violates agreement rules must compensate other
countries by lowering tariffs or making other concessions, or be subject to
retaliation.

18. (CSR) Corporate social responsibility: The responsibilities that corporations
have to workers and their families, to consumers, to investors, and to the natural
environment.

19. Corporation: Form of business organization that is created as a distinct legal
person composed of one or more actual individuals or legal entities. Primary
advantages of a corporation include limited liability, ease of ownership, transfer,
and perpetual succession. A business form legally separate from its owners. Its
distinguishing features include limited liability, easy transfer of ownership,
unlimited life, and an ability to raise large sums of capital.

20. Decline: The falling of stocks or prices in the market.

21. Breakout: The breakout of a virus or the breakout of a war.
📚 There's a difference between this breakout with the breakout we call in chart analyzing !

22. Minutes: The report from a meeting. (minutes from Fed’s meeting will be
released)

23. Consolidate: The prices are reaching a plateau and becoming more stable.
(the prices are consolidating)

24. Stimulus measure: The government is giving the banks a stimulus measure
to be bailed out for the financial crisis.

25. Retreat: The management is retreating from their initial position to deduct
the salary of the workers. (it's an example of retreat)

📍 We'll continue this series of educational posts in next days, STAY TUNED and don't forget to follow this idea, So you'll be notified after I post the new one...

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