Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. Fundamental analysis is the cornerstone of investing. It insists that no one should purchase or sell a share on the basis of tips and rumors. The fundamental approach calls upon the investors to make his buy or sell

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... sion on the basis of a detailed analysis of the information about the company, about the industry, and the economy. Fundamental analysis is really a logical and systematic approach to estimating the future dividends and share price. It is based on the basic premise that share prices are determined by a number of fundamental factors relating to the economy, industry and company. Hence, the economy fundamentals, industry fundamentals and company fundamentals have to be considered while analyzing a security for investment purpose.