Security analysis is the analysis of tradeable financial instruments called securities

Security (finance)

A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...

. These can be classified into debt securities, equities

Stock

The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...

, or some hybrid of the two. More broadly, futures contract

Futures contract

In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...

s and tradeable credit derivative

Credit derivative

In finance, a credit derivative is a securitized derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the transaction itself...

s are sometimes included. Security analysis is typically divided into fundamental analysis

Fundamental analysis

Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. When applied to futures and forex, it focuses on the overall state of the economy, interest rates, production, earnings, and...

, which relies upon the examination of fundamental business factors such as financial statement

Financial statement

A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...

s, and technical analysis

Technical analysis

In finance, technical analysis is security analysis discipline for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis incorporate technical analysis, which being an aspect of active management stands...

, which focuses upon price trends and momentum. Quantitative analysis may use indicators from both areas.

See also

• Stock valuation
  Stock valuation
  In financial markets, stock valuation is the method of calculating theoretical values of companies and their stocks. The main use of these methods is to predict future market prices, or more generally potential market prices, and thus to profit from price movement – stocks that are judged...
  
  
• Securities research
  Securities research
  Securities research is a discipline within the financial services industry. Securities research professionals are known most generally as "analysts," "research analysts," or "securities analysts;" all the foregoing terms are synonymous...
  
  
• Financial analyst
  Financial analyst
  A financial analyst, securities analyst, research analyst, equity analyst, or investment analyst is a person who performs financial analysis for external or internal clients as a core part of the job.-Job:...
  
  

For the book by Benjamin Graham, see Security Analysis (book).
Financial markets

Bruxelles Bourse.jpg

Public market

Exchange
Securities
Bond market

Fixed income
Corporate bond
Government bond
Municipal bond
Bond valuation
High-yield debt
Stock market

Stock
Preferred stock
Common stock
Registered share
Voting share
Stock exchange
Derivatives market

Securitization
Hybrid security
Credit derivative
Futures exchange
OTC, non organized

Spot market
Forwards
Swaps
Options
Foreign exchange

Exchange rate
Currency
Other markets

Money market
Reinsurance market
Commodity market
Real estate market
Practical trading

Participants
Clearing house
Financial regulation

Finance series
Banks and banking
Corporate finance
Personal finance
Public finance
v · d · e

Security analysis is the analysis of tradeable financial instruments called securities. These can be classified into debt securities, equities, or some hybrid of the two. More broadly, futures contracts and tradeable credit derivatives are sometimes included. Security analysis is typically divided into fundamental analysis, which relies upon the examination of fundamental business factors such as financial statements, and technical analysis, which focuses upon price trends and momentum. Quantitative analysis may use indicators from both areas.
[edit] See also