Important Points for IC 99 - Asset Management Exam
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Corporate governance describes the policies in place in an organisation, defining the ralationships and responsibilities between management, directors and various stakeholders.
A moving average is the average price of a security over a set amount of time.
Technical analysis and fundamental analysis are the two main analytical tools used to analyze financial markets for investment decisions. Fundamental analysis looks at economic and financial factors that influence business performance and profitability which have been discussed in the earlier chaper where as technical analysis looks at the price movement of a security and uses this data to predict future price movements, which are discussed in this chapter.
In finance, technical analysis is mainly a security analysis process and techniques used for forecasting the direction of prices of security through the study of past market data, primarily price and volume.
For analysis in depth and for better investment decision these two approaches - technical analysis, and how technical and fundamental analysis can be used together. Technical analysts typically begin their analysis with charts and trends while fundamental analysts start with a companys financial statements, annual reports etc.