What is the difference between fundamental and technical analysis? Can you think of any trading strategies that use technical analysis? What are the underlying assumptions made by these strategies?
Fundamental analysis uses information in a firm's financial statements and other sources of public information to assess a firm's expected future performance, and hence its likely value. Firms with estimated values greater than their current prices are then recommended as buys and those with values lower than the current price as sells. In contrast, technical analysis uses patterns of past stock price changes, trading volume, or levels of short-sale interest in the stock for making recommendations on whether to buy or sell a stock.
The key assumption underlying technical trading strategies is that the stock market is inefficient. Technical descriptors of stock price movement, past prices, volume, etc., are common knowledge and, in an efficient market, should fully reflected in prices.
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In the balanced scorecard methodology the ______________________________ component relates to the organization's ability to identify its core competencies and to assess how well it performs in these identified areas of competency
Fill in the blank(s) with correct word
[APPENDIX] Deferred income taxes arise because
a. corporations often make errors in their tax estimations. b. companies can use accounting methods that minimize net income for tax purposes and other methods that maximize net income for reporting to shareholders. c. the IRS owes a company a refund from last year. d. large corporations generally have operations in foreign countries whose tax law is quite different from U.S. tax law.
Bossa Nova founder and CEO Alton Johnson was fascinated with the fruits of Brazil, a fascination that led him to develop juices with these new fruit flavors for the American market. Johnson's interest in Brazilian fruits is an example of ________
A) idea screening B) idea generation C) concept testing D) product development E) product manufacturing
The sale of plant assets and the payment of dividends will reduce free cash flow
Indicate whether the statement is true or false