Monthly Archives: November 2016

Basic Assumptions of Technical analysis of Stocks

Technical analysis is a method of evaluating securities by analysing the past prices (Historical prices) and Volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. Market Discounts Everything: A major criticism over technical analysis is that it only considers movement of share …

List of free and premium websites for financial and economic data

Data is so much important for researchers, Investment analyst, Quants and in Academia. We are in information age. Data is everywhere in internet. The thing is it depend for where you look for the data. Here I bring you a list of best websites, free and paid platforms  where you can retrieve Financial and economic (macro and micro) data. Yahoo …

Levels of Market Efficiency / EMH

Economists have defined different levels of efficiency according to the type of information, which is reflected in prices. To understand what is efficient market . First, I recommend you to read  EFFICIENT MARKET HYPOTHESIS AND ITS TYPES . There are three levels of market efficiencies, they are discussed below: Weak-form efficiency In this form of market the share prices fully …

FINANCIAL STATEMENT ANALYSIS- Significance and Limitations

Financial statements includes Trading, Profit and Loss Account and Balance Sheet. Expressing the financial items in these financial statements brings a meaningful information. Financial statement – Definition: A process of evaluating the relationship between the component parts of the financial statements to obtain a better understanding of a firm’s position and performance. Financial statement analysis is an important part of …

Efficient Market Hypothesis and its types

EMH (Efficient Market Hypothesis) elaborates that all relevant information is fully and immediately reflected in market price of a security where an investor will receive stable rate of return. In other words, an investor should not expect to earn an abnormal return (above the market return) through either technical analysis or fundamental analysis.The efficient market hypothesis (EMH) implies that if …